Cymer Capital’s Sam D’Amore tips Fast Retailing – the Japanese-listed parent company of a number of brands including Uniglo – at Sohn Hearts & Minds. 

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In the past financial year, Fast Retailing posted 18 per cent operating margins, more than double H&M’s. But D’Amore says the real opportunity lies overseas. 

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Fast Retailing is just 16 per cent the size of Gap in the US, and 10 per cent of Inditex in Europe, giving “a huge runway” for growth. 

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She flags three risks: succession, given founder Tadashi Yanai is 77, execution risk as the brand expands, and a “punchy” valuation of 39 times earnings. 

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But she also points to artificial intelligence as a hidden tailwind. 

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As shoppers increasingly ask AI tools for product recommendations, she believes quality products with genuine customer loyalty – rather than heavily marketed brands – will win out. 

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This article was originally posted by The Australian here. Licensed by Copyright Agency. You must not copy this work without permission.

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