Goldman Sachs has revised upward its operating profit forecasts for FAST RETAIL-DRS (06288) for fiscal years 2026 to 2028 by 2%, 1%, and 1%, respectively. This adjustment reflects robust domestic sales momentum in Japan through November, including an 11% year-over-year increase in same-store sales and a 12.1% rise in total sales from September to November.

The firm anticipates FAST RETAIL-DRS's consolidated operating profit for Q1 FY2026 to reach ¥184 billion, up 17% year-over-year. Goldman Sachs also raised the target price for Uniqlo's Japan-listed shares (9983.JP) to ¥60,000 while maintaining a "Buy" rating.

The forecast incorporates factors such as the bottoming out of performance in Mainland China and the impact of U.S. tariffs. Sales and operating profit in China are expected to grow by 2% and 5%, respectively. In North America, despite tariff pressures, operating margins are projected to improve in FY2026, particularly in the second half, due to price adjustments, controlled discounts, and enhanced labor efficiency.

For Japan, considering the weaker yen reducing Uniqlo's pricing flexibility, Goldman Sachs predicts a consolidated operating margin of 16.9% for FY2026, a 0.3-percentage-point improvement year-over-year.