Fast Retailing (TYO: 9983) DCF Analysis: Uniqlo and GU
I've uploaded a more illustrative and detailed equity research as a power point of the stock onto Google Drive: [ INSERT ] INTRODUCTION: Uniqlo is a clothing retailer which uses a Specialty Store Retailer of Private Label Apparel (SPA) business model meaning they manufacture all their product lines through controlling the entire production process. Their products are mainly designed to be versatile and basic, timeless and able to fit into any outfit. Due to the nature of their products, it fits the taste and preference of Asian countries where consumers prefer products which don’t make them unnecessarily stand out. Uniqlo positions itself away from fast fashion which frees up cash as they do not have to constantly purchase more and more inventory to purchase newer more trendy flavor of the month clothes. INVESTMENT THESIS 1: COST ADVANTAGE Uniqlo is not in the business of fast fashion unlike their competitors, this means that Uniqlo is able to buy in bulk as they are not worried ab...