Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh (6288) AI Stock Analysis

• Market Cap: HK$1.01T
• Dividend Yield: 0.93%
• Average Volume (3M): 10.38K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.21
• Revenue Growth: 10.49%
• EPS Growth: 17.37%
• Country: HK
• Employees: 60,454
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.24
• Shares Outstanding: 31,822,098,000
• 10 Day Avg. Volume: 25,260
• 30 Day Avg. Volume: 10,381
• PEG Ratio: <0.01
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): HK$189.53B

• Rating: 68 Neutral
• Price Target: HK$37.00 ▲(34.06% Upside)
• Action: Downgraded Date: 01/10/26
• Date: Action: Downgraded 01/10/26

The score is driven by strong underlying profitability, ROE, and a conservative balance sheet, partially offset by a significant TTM revenue contraction and weakening recent free cash flow growth. Technicals remain supportive (price above key moving averages) but look overextended, and the high P/E with a low yield weighs on the overall rating.

Positive Factors

High and stable gross & EBIT margins

Consistently strong gross margins (~52–54%) and mid-to-high teen EBIT margins indicate durable pricing power, efficient sourcing and product mix. For a global apparel retailer, these margins support reinvestment, brand investment and resilience across cycles, sustaining long-term profitability.

Conservative balance sheet with strong ROE

Low leverage (D/E ~0.25–0.31) combined with ROE around 16–20% provides financial flexibility for capex, inventory management and M&A while preserving credit strength. This balance between returns and conservatism supports durable capital allocation and downside protection over months.

Integrated, scale-driven retail model led by UNIQLO

An integrated model (product planning, coordinated sourcing, distribution, company stores and e-commerce) and the global scale of UNIQLO drive cost efficiency, inventory control and brand leverage. These structural advantages support repeatable margin and volume performance over time.

Negative Factors

Sharp recent revenue contraction

A ~24.8% TTM revenue drop represents a material setback to growth momentum and questions near-term demand trends. Sustained top-line weakness could erode operating leverage, pressure margins and slow earnings recovery, increasing execution risk over the next several months.

Weakening free cash flow momentum

Although FCF remains positive historically, recent declines in annual and TTM free cash flow reduce internal funding capacity for inventory, store expansion or buybacks. Persistent FCF weakness can constrain strategic options and heighten reliance on operational recovery.

Reporting comparability concerns in balance sheet

Notable discrepancies between TTM and prior annual balance sheet figures reduce metric comparability and make leverage, liquidity and asset trends harder to interpret. This reporting gap raises monitoring risk for capital allocation and may hide transitory versus structural moves.

Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh Business Overview & Revenue Model

Company Description

Fast Retailing Co., Ltd., through its subsidiaries, operates as an apparel designer and retailer in Japan and internationally. The company operates through four segments: UNIQLO Japan, UNIQLO International, GU, and Global Brands. It manufactures and retails clothing for men, women, children, and babies; and lingerie, as well as other goods and items. The company operates stores and franchises under the UNIQLO, GU, PLST, Theory, COMPTOIR DES COTONNIERS, J Brand, and PRINCESSE TAM.TAM brand names. It also sells its products through online; and provides real estate leasing services. The company was formerly known as Ogori Shoji Co., Ltd. and changed its name to Fast Retailing Co., Ltd. in September 1991. Fast Retailing Co., Ltd. was founded in 1949 and is headquartered in Yamaguchi, Japan.

How the Company Makes Money

Fast Retailing generates revenue primarily through the sale of apparel and related products across its global retail network. The company's main revenue stream comes from its UNIQLO brand, which contributes a significant portion of total sales through its direct retail stores and e-commerce platforms. Additionally, Fast Retailing benefits from economies of scale and strategic pricing, allowing it to maintain competitive pricing while ensuring profitability. The company also engages in wholesale distribution and licensing arrangements, further diversifying its revenue streams. Partnerships with various manufacturers and suppliers help Fast Retailing manage production costs effectively. Seasonal promotions, collaborations with designers, and limited-edition collections also drive consumer interest and sales, enhancing overall revenue generation.

Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh Financial Statement Overview

Summary

Strong and fairly consistent profitability (gross margin ~52–54%, EBIT margin mostly mid-to-high teens) with solid ROE (~16–20%) and conservative leverage (debt-to-equity ~0.25–0.31). Offsetting these strengths are the sharp TTM revenue decline (-24.77%) and mixed recent cash flow momentum (FCF down in latest annual period and TTM).

Income Statement

Profitability is strong and fairly consistent for a retailer, with healthy gross margins (~52–54%) and solid operating profitability (EBIT margin mostly mid-to-high teens). Annual revenue growth has been positive from 2022–2025 (roughly high-single-digit to ~20% range), and net margin has generally held around ~11–13%, supporting steady earnings expansion. The main weakness is the latest TTM (Trailing-Twelve-Months) revenue decline (-24.77%), which signals a near-term slowdown and increases uncertainty around the growth trajectory, even though margins remain resilient.

Balance Sheet

Leverage appears conservative with debt-to-equity generally around ~0.25–0.31, indicating balance sheet flexibility. Returns on equity are consistently strong (~16–20%), suggesting efficient capital use and durable profitability. A key watch item is the large gap between the TTM (Trailing-Twelve-Months) balance sheet figures and prior annual levels (notably lower reported debt, equity, and assets), which may reflect reporting-scope differences and reduces comparability versus the annual trend.

Cash Flow

Cash generation is solid, with free cash flow consistently positive and generally covering a large portion of net income (free cash flow to net income ~0.76–0.84 across periods). Operating cash flow relative to net income is positive but not consistently strong (roughly ~0.49–0.76), implying some working-capital or timing variability. Recent momentum is mixed: free cash flow growth is negative in the latest annual period and also down in TTM (Trailing-Twelve-Months), which slightly weakens the near-term cash-flow outlook despite still-healthy absolute cash generation.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	3.56T	3.40T	3.10T	2.77T	2.30T	2.13T
Gross Profit	1.87T	1.83T	1.67T	1.44T	1.21T	1.07T
EBITDA	881.87B	879.90B	772.69B	634.68B	601.42B	450.78B
Net Income	452.93B	433.01B	372.00B	296.23B	273.33B	169.85B
Balance Sheet
Total Assets	4.28T	3.86T	3.59T	3.30T	3.18T	2.51T
Cash, Cash Equivalents and Short-Term Investments	922.75B	1.79T	1.66T	1.48T	1.48T	1.23T
Total Debt	689.70B	654.57B	509.16B	706.45B	850.73B	843.82B
Total Liabilities	1.72T	1.53T	1.52T	1.43T	1.57T	1.35T
Stockholders Equity	2.50T	2.27T	2.02T	1.82T	1.56T	1.12T
Cash Flow
Free Cash Flow	536.61B	445.08B	545.52B	366.06B	350.42B	352.00B
Operating Cash Flow	690.49B	580.62B	651.52B	463.22B	430.82B	428.97B
Investing Cash Flow	-662.38B	-578.92B	-82.23B	-574.40B	-212.23B	-82.60B
Financing Cash Flow	-354.17B	-339.14B	-269.00B	-364.56B	-213.05B	-302.99B

Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6288, the sentiment is Positive. The current price of 27.6 is below the 20-day moving average (MA) of 32.50, below the 50-day MA of 30.76, and above the 200-day MA of 26.92, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6288.

Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3709	80 Outperform	HK$4.67B	4.26	10.56%	4.83%	-7.34%	-28.66%
1368	74 Outperform	HK$13.44B	8.10	15.27%	4.94%	-12.29%	21.00%
6288	68 Neutral	HK$1.01T	27.46	19.74%	0.93%	10.49%	17.37%
6110	68 Neutral	HK$18.36B	5.77	13.24%	9.65%	-5.66%	-31.36%
0709	67 Neutral	HK$2.36B	4.81	10.57%	9.18%	3.78%	-21.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1223	42 Neutral	HK$4.31B	-44.65	-5.37%	0.32%	1.21%	-5.68%

Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh Corporate Events

Fast Retailing Sets Key Dates for Potential 2026 Interim Dividend and HDR Eligibility

Fast Retailing Co., Ltd. has announced the proposed record date arrangements for its potential interim dividend for the six months ending 28 February 2026, stating that any interim dividend will be payable to shareholders on the Japan share register and HDR holders on the Hong Kong register as of Friday, 27 February 2026. The company has also set out key deadlines for HDR investors, including the cut-off time on 27 February 2026 for lodging HDR transfers to qualify for the interim dividend and a suspension of HDR conversions between 24 and 27 February 2026, clarifying that conversion requests must be filed by close of business and noon respectively on 23 February 2026, which helps investors plan their trading and corporate action strategies around the dividend timeline.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.

Fast Retailing Sets Record Date for 2026 Interim Dividend on Hong Kong Depository Receipts

Fast Retailing Co., Ltd. has announced the proposed record date for an upcoming interim dividend relating to its Hong Kong Depository Receipts for the six months ending 28 February 2026, tied to the financial year ending 31 August 2026. The ex-dividend date is set for 26 February 2026, with the record date on 27 February 2026, and investors must lodge transfer documents with the HDR registrar, Computershare Hong Kong Investor Services, by 16:30 on 27 February to qualify; the actual dividend amount, payment date, default currency, exchange rate and withholding tax details remain to be announced, leaving holders with clarity on timetable but not yet on payout levels or tax treatment.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.

Fast Retailing Posts Strong First-Quarter Growth and Lifts Full-Year Outlook

Fast Retailing reported strong results for the three months ended 30 November 2025, with revenue rising 14.8% year on year to ¥1.03 trillion and business profit jumping 31.0%. Operating profit increased 33.9%, while profit attributable to owners of the parent climbed 11.7% to ¥147.4 billion, and basic earnings per share improved to ¥480.55. The company’s balance sheet also strengthened, with total assets up to ¥4.29 trillion and equity attributable to owners of the parent increasing to ¥2.50 trillion. Reflecting confidence in its performance and outlook, Fast Retailing raised its dividend forecast for the year ending 31 August 2026 to a total of ¥540 per share, above the previous year’s ¥500, and upgraded its full‑year earnings guidance, now projecting revenue of ¥3.8 trillion and profit attributable to owners of ¥450 billion. Trading in the company’s Hong Kong depositary receipts, which had been halted pending this disclosure, is scheduled to resume on 9 January 2026, restoring liquidity for investors following the release of the improved results and forecasts.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.

Fast Retailing Raises FY2026 Dividend Forecast on Stronger Earnings Outlook

Fast Retailing has revised upward its dividend estimate for the fiscal year ending 31 August 2026 following an increase in its consolidated earnings forecast. The board has raised the projected interim dividend from 260 yen to 270 yen per share and the year-end dividend from 260 yen to 270 yen per share, lifting the full-year dividend forecast from 520 yen to 540 yen per share, compared with a total of 500 yen in the previous fiscal year. The move signals management’s confidence in the company’s earnings trajectory and enhances expected shareholder returns relative to the prior year.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.

Fast Retailing Halts Hong Kong DR Trading Ahead of Quarterly Results

Fast Retailing Co., Ltd. has requested a trading halt of its Hong Kong depositary receipts on the Stock Exchange of Hong Kong from 1:00 p.m. on January 8, 2026, ahead of releasing its quarterly results for the three months ended November 30, 2025. The company stated that the forthcoming results constitute inside information, prompting the suspension to ensure all investors receive the update simultaneously, a move that underscores regulatory compliance and may heighten market attention to the forthcoming earnings disclosure.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.

Fast Retailing Sets January Board Meeting to Approve Quarterly Results

Fast Retailing Co., Ltd. has scheduled a board meeting for January 8, 2026, to review and approve the Group’s quarterly financial results for the three months ended November 30, 2025. The timing of the meeting signals the company’s standard reporting cycle and provides investors and other stakeholders with an indication of when to expect updated financial disclosures that may inform market assessments of the Group’s recent operating performance.

The most recent analyst rating on (HK:6288) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Fast Retailing Co Ltd Shs Unsponsored Hong Kong Depositary Receipt Repr 1/100th Sh stock, see the HK:6288 Stock Forecast page.