9983 JP

FAST RETAILING CO.LTD.

Consumer


Presented:10/25/2019
Price:¥68,000.00
Cap:$57.98B
Current Price:¥53,520.00
Cap:$137.14B

Presented

Date10/25/2019
Price¥68,000.00
Market Cap$57.98B
Ent Value$50.02B
P/E Ratio42.68x
Book Value¥9,196.60
Div Yield0.71%
Shares O/S102.06M
Ave Daily Vol630,891
Short IntN/A

Current

Price¥53,520.00
Market Cap$137.14B
FAST RETAILING CO., LTD. is a holding company that engages in the control and management of its group companies which centers in casual wear. It operates through the following segments: UNIQLO Japan, UNIQLO International, GU, Global Brands, and Others. The UNIQLO Japan segment manages in UNIQLO clothing business within Japan. The UNIQLO International segment handles in UNIQLO clothing business outside of Japan. The GU segment deals with GU business in Japan and overseas. The Global Brands segment handles Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand clothing operations. The Others segment includes the real estate business. The company was founded by Hitoshi Yanai in March 1949 and is headquartered in Yamaguchi, Japan.

Fast Retailing Co Ltd (9983 JP) – Short 

Publicly traded companies mentioned herein: Bank of Japan (8301 JP), Fast Retailing Co Ltd (9983 JP)

Highlights

The presenter is short shares of Fast Retailing Co Ltd (9983 JP), the Japanese apparel retailer best known for its UNIQLO brand. Shares of Fast Retailing trade at ~39x this year’s consensus earnings estimate (FY2020 ends August 31, 2020) and ~37x next year’s consensus numbers (FY2021). She thinks this is too rich of a valuation and doesn’t think the company will be able to reach its expansion goals due to fashion constraints as well as financial constraints. There is also a level of confidence among investors that isn’t extended to other fashion retailers, in the presenter’s opinion. While Fast Retailing has missed on earnings for four consecutive quarters, the shares continue to appreciate. Going forward, the presenter believes there is still 15% downside to the company’s earnings. This financial underperformance would result in disappointing international growth, which could cause investor sentiment to turn negative. 

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