Cymer Capital chief investment officer Samantha D’Amore has pitched Japanese-listed Fast Retailing, owner of Uniqlo, arguing the company’s focus on affordable, functional clothing sets it apart from fast-fashion rivals.
“Fast Retailing is not the same thing as fast fashion,” she told the audience. “They make high quality basics and functional clothing at affordable prices. It’s a narrow range of products refined over the years. No logos, no chasing trends. It’s quiet.”
Uniqlo’s Heattech and Airism fabrics deliver technical performance without luxury price tags, helping drive customer loyalty and repeat purchases, D’Amore said.
“This morning, everybody solved a small problem of what to wear,” she added. “Fast Retailing helps millions of customers with that globally: how to stay warm, cool, dressed for the office or a hike, in clothes that last and not throw away, at affordable prices.”
And the model is profitable, too. Fast Retailing generated an 18 per cent operating margin last financial year, close to fellow retailer Inditex’s 20 per cent and more than double H&M’s.
“Over 80 per cent of Fast Retailing’s supply base has worked with them for more than a decade, and because they aren’t chasing the latest trend, they avoid the deep discounting cycle that plagues peers,” D’Amore said.
D’Amore sees significant expansion potential in the US and Europe, where Uniqlo remains relatively small.
Risks include founder Tadashi Yanai’s succession, overseas execution and a punchy 39-times earnings valuation.
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