Muji Operator Ryohin Keikaku Hits Record High After Upgrading Full-Year Forecast

Shares of Ryohin Keikaku Co., Ltd. (TYO:7453), the parent company of the Muji retail chain, surged to a record high on Monday after the company upgraded its earnings outlook for the fiscal year, citing robust overseas sales and enhanced profitability. The company's Tokyo-listed stock jumped as much as 19% to a record high of 4,311.0 yen.

Upgraded Forecast Sparks Investor Optimism

Ryohin Keikaku raised its guidance for the fiscal year ending August 31, signaling strong confidence in its business momentum. The Japanese retailer attributed the revision to stronger-than-expected sales and improved profitability.

The company's updated forecasts include:

• Operating revenue: 907 billion yen, up from a previous estimate of 887 billion yen.
• Operating profit: 98 billion yen, an increase from the prior forecast of 89 billion yen.
• Net profit: 67 billion yen, revised from 62 billion yen.

Despite the upgraded profit outlook, the company announced it would keep its annual dividend unchanged at 32 yen per share.

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Overseas Growth and Margin Expansion Drive Performance

The optimistic revision was supported by strong results for the nine months ended May 31. During this period, Ryohin Keikaku reported a 16.9% year-over-year increase in operating revenue to 690.8 billion yen, while net profit attributable to shareholders rose 34.3% to 58.6 billion yen.

Growth was primarily driven by the company's overseas business, particularly in East Asia, where sales jumped 29.3%. The retailer pointed to strong demand in key markets including mainland China, Taiwan, Hong Kong, and South Korea.

Profitability also improved significantly. According to the company, higher gross margins were achieved through cost-saving measures, such as bringing more production in-house, and a reduction in promotional discounts.