"Strongest" retail is not Nitori or Fast Retailing?! Top 5 stocks chasing after higher prices, thoroughly comparing operating margin and existing store revenue! [Financial Results Summary]
Amid rising prices, the stock prices of well-performing retail stocks are trending positively.Retail stocks that are hitting new highs in the current period.Amongst them,Analyzing the 'strength' based on the recent performance of 5 large specialty chain stores known as 'category killers'.Focusing on the 5 stocks currently hitting new highs.
As stocks hitting new historic highs in a specific product field limited to 'category killers'. $Fast Retailing (9983.JP)$、 $Nitori Holdings (9843.JP)$、 $Shimamura (8227.JP)$、 $ABC-Mart (2670.JP)$、 $Nishimatsuya Chain (7545.JP)$Pick up 5 stocks.
The following are the three key points to consider when analyzing each company's financial statements.
1. Trend of increasing revenue and profit (growth potential)
The increase in sales and profits is the most clear indicator of a company's growth.The duration of the trend of increasing revenue and profit reflects the company's growth potential.represent.
2. Operating margin (earning power)
'Earning power' is the very essence of a company's strength, especiallyIn the retail trade industry where profits are made on low-margin, high-volume sales, the low gross profit margin leads to price competitiveness, while the low selling, general, and administrative expense ratio contributes to profit increase and gross profit margin control.Determining the operating marginGross profit margin and selling, general, and administrative expense ratio are the sources of a company's strength.Can be said.
'Earning power' is the very essence of a company's strength, especiallyIn the retail trade industry where profits are made on low-margin, high-volume sales, the low gross profit margin leads to price competitiveness, while the low selling, general, and administrative expense ratio contributes to profit increase and gross profit margin control.Determining the operating marginGross profit margin and selling, general, and administrative expense ratio are the sources of a company's strength.Can be said.
3. Existing store revenue (year-on-year comparison) (sustainability)
Rather than the addition by new stores,The transition of existing stores is the true strength of a company, and a significant factor in determining the sustainability of growth.Among them,The transition of the number of customersIt is in a way natural for the average spending per customer to increase in an inflationary period, but the trend of the number of customers clearly indicates how well the hearts of shopping customers in the region are captured.
Rather than the addition by new stores,The transition of existing stores is the true strength of a company, and a significant factor in determining the sustainability of growth.Among them,The transition of the number of customersIt is in a way natural for the average spending per customer to increase in an inflationary period, but the trend of the number of customers clearly indicates how well the hearts of shopping customers in the region are captured.
1. The trend of increasing revenue and profit.
The top 5 stocks are all showing a trend of increasing revenue and profit, making it difficult to determine the superior one.
The one that has been maintaining the trend of increasing revenue and profit for the longest time is,ShimamuraandFast RetailingShimamura in the fiscal year ending in February 24, Fast Retailing in the fiscal year ending in August 24,Both have achieved 4 consecutive periods of increasing revenue and profit.Next, bothHaving updated sales and profits for 3 consecutive periods, the company is also expecting increased revenue and profit this fiscal year.。
Following the two companies isABC Mart's 3consecutive periods of increased revenue and profit. The company achieved record-high sales and profits in the fiscal year ending February 2024. They are also expecting increased revenue and profit in the fiscal year ending February 2025.Revised the outlook at the time of the interim earnings announcement.Is doing.
Nitori HDisFrom the 22 fiscal year until the end of February, it has achieved continuous growth for 35 consecutive periods.However, after the change in the fiscal year, it experienced a decrease in both revenue and profit in the fiscal year ending March 24.The outlook for the fiscal year ending March 25 is expected to return to growth in revenue and profit, with estimated record-high revenue.and is expected to reach an all-time high in revenue.
Seamart chainisFor the 24th fiscal year ending in February, it is expected to increase revenue for the 29th consecutive period and increase profit for the second consecutive period.is turning out to be.For the fiscal year ending in February 2025, it is expected to reach the highest level of sales and profits ever.。
The top 5 stocks are all showing a trend of increasing revenue and profit, making it difficult to determine the superior one.
The one that has been maintaining the trend of increasing revenue and profit for the longest time is,ShimamuraandFast RetailingShimamura in the fiscal year ending in February 24, Fast Retailing in the fiscal year ending in August 24,Both have achieved 4 consecutive periods of increasing revenue and profit.Next, bothHaving updated sales and profits for 3 consecutive periods, the company is also expecting increased revenue and profit this fiscal year.。
Following the two companies isABC Mart's 3consecutive periods of increased revenue and profit. The company achieved record-high sales and profits in the fiscal year ending February 2024. They are also expecting increased revenue and profit in the fiscal year ending February 2025.Revised the outlook at the time of the interim earnings announcement.Is doing.
Nitori HDisFrom the 22 fiscal year until the end of February, it has achieved continuous growth for 35 consecutive periods.However, after the change in the fiscal year, it experienced a decrease in both revenue and profit in the fiscal year ending March 24.The outlook for the fiscal year ending March 25 is expected to return to growth in revenue and profit, with estimated record-high revenue.and is expected to reach an all-time high in revenue.
Seamart chainisFor the 24th fiscal year ending in February, it is expected to increase revenue for the 29th consecutive period and increase profit for the second consecutive period.is turning out to be.For the fiscal year ending in February 2025, it is expected to reach the highest level of sales and profits ever.。
2. operating margin
Fast Retailing, Nitori HD, and ABC MartisWith a high gross profit margin of over 50%, it has achieved a high operating profit margin of around 15%. However, Aeon Mall reduced its advertising and publicity expenses, resulting in a decrease of 1.6 points in the selling, general, and administrative expenses ratio.On the other hand, Fast Retailing increased by 0.15 points and Nitori Holdings increased by 0.7 points, indicating that future cost control will be a challenge.
among them is Shimamura, which has the lowest selling, general, and administrative expenses ratio. Although it has slightly increased compared to the previous year, it is still Shimamurahas the lowest selling, general, and administrative expenses ratio, having slightly increased compared to the previous year but remaining so far.Overwhelming other companies in the mid-20% range.Low-cost operations have become the toro's weapon.
Nishimatsuya's options chainisSuccessfully lowered the selling, general, and administrative expenses ratio by 0.14 points, achieving cost management improvement.Also reducing the gross profit margin, it can be seen that they are launching an offensive on the price front.
Fast Retailing, Nitori HD, and ABC MartisWith a high gross profit margin of over 50%, it has achieved a high operating profit margin of around 15%. However, Aeon Mall reduced its advertising and publicity expenses, resulting in a decrease of 1.6 points in the selling, general, and administrative expenses ratio.On the other hand, Fast Retailing increased by 0.15 points and Nitori Holdings increased by 0.7 points, indicating that future cost control will be a challenge.
among them is Shimamura, which has the lowest selling, general, and administrative expenses ratio. Although it has slightly increased compared to the previous year, it is still Shimamurahas the lowest selling, general, and administrative expenses ratio, having slightly increased compared to the previous year but remaining so far.Overwhelming other companies in the mid-20% range.Low-cost operations have become the toro's weapon.
Nishimatsuya's options chainisSuccessfully lowered the selling, general, and administrative expenses ratio by 0.14 points, achieving cost management improvement.Also reducing the gross profit margin, it can be seen that they are launching an offensive on the price front.
3. Revenue from existing stores
The largest growth in revenue for existing stores in the past six months is the one forFast Retailing (Uniqlo Japan)andABC-MART (only domestic standalone).For each of them11.7% and 9.9% growth close to double digitsHowever, both companies heavily rely on growth in average spending per customer rather than number of customers.And there is a risk that if the growth rate is too high, it may lead to a rebound in the following year, making it a "double-edged sword."
A.B.C. MartisFrom September 2022 to September 2024, existing store revenue has been increasing for over 2 years.continued.
Including stability,Shimamura (Fashion Center Shimamura) can also be considered the "strongest." Not by customer unit pricebutThe contribution of customer growth is significant, and from November 23 to September, for about a year, they have been continuously increasing existing store revenue.This is positive.
A.B.C. MartisFrom September 2022 to September 2024, existing store revenue has been increasing for over 2 years.continued.
Including stability,Shimamura (Fashion Center Shimamura) can also be considered the "strongest." Not by customer unit pricebutThe contribution of customer growth is significant, and from November 23 to September, for about a year, they have been continuously increasing existing store revenue.This is positive.
All companies are showing strong performance and high capabilities. $Fast Retailing (9983.JP)$isIn the August 24 period, sales reached 3 trillion yen with double-digit growth, and operating profit reached 500 billion yen, demonstrating strength.However, there may be risks to consider such as the potential for a significant backlash in existing store growth, and the feeling of overvaluation when the PBR exceeds 7 times, which may reveal hidden vulnerabilities behind apparent strength.
In terms of the continuity of existing store revenue $ABC-Mart (2670.JP)$etc $Shimamura (8227.JP)$ABC Mart, which has momentum such as a competitive advantage and upward revision of full-year outlook, and Shimamura, which has stability with a strong low-cost operation, each have strength comparable to Fast Retailing. Also, in terms of undervaluation of stock prices,PBR around 1 timeShimamura with PBR around 1 time and $Nishimatsuya Chain (7545.JP)$have a significant presence based on past performance of sustained revenue and profit growth for 35 periods $Nitori Holdings (9843.JP)$is also significant.
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Source: Each company's HP
Source: Each company's HP
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