Story
Muji Operator Ryohin Keikaku Hits Record High After Raising Profit Outlook
Shares of Ryohin Keikaku (TYO:7453) surged to a record high on Monday after the operator of the Muji retail chain raised its full-year earnings outlook. The company cited robust overseas sales and improved profit margins as key drivers for the upgraded forecast.
Market Reaction
Following the announcement, Tokyo-listed shares of the company jumped as much as 19% to reach a record high of ¥4,311.0. The strong investor response underscores confidence in the retailer's growth trajectory and operational efficiency.
Upgraded Full-Year Outlook
Ryohin Keikaku lifted its financial guidance for the fiscal year ending August 31. The company's updated projections are:
- Operating revenue: Forecast raised to ¥907 billion from a previous estimate of ¥887 billion.
- Operating profit: Raised to ¥98 billion from a prior forecast of ¥89 billion.
- Net profit: Increased to ¥67 billion from ¥62 billion.
AdThe company announced it would keep its annual dividend unchanged at ¥32 per share.
Overseas Sales Fuel Growth
The optimistic forecast is supported by strong performance in the nine months ended May 31. During that period, Ryohin Keikaku reported that operating revenue grew 16.9% from a year earlier to ¥690.8 billion, while net profit rose 34.3% to ¥58.6 billion.
According to the company, growth was led by its overseas business, particularly in East Asia, where sales jumped 29.3%. The retailer pointed to strong demand in mainland China, Taiwan, Hong Kong, and South Korea. Profitability also improved as cost-reduction measures, such as bringing production in-house, and fewer discounts helped to lift gross margins.