By Kosaku Narioka
Ryohin Keikaku shares rose sharply after the MUJI owner projected a sharp improvement in earnings for the new fiscal year thanks partly to store openings.
The company’s shares were recently 11% higher at 2,007.0 yen on Monday morning after rising as much as 15% earlier.
Ryohin Keikaku said Friday after market close that it expects net profit to increase 50% to Y33.00 billion ($220.6 million) for the fiscal year ending August 2024, as it plans to open more stores in Japan, China, Thailand and Vietnam and shut unprofitable ones in the U.S. and Europe.
The company expects revenue to climb 10% to Y640.00 billion this fiscal year thanks to new store openings and growth in same-store and e-commerce sales worldwide.
The MUJI owner projects that its total number of stores will increase to 1,331 this fiscal year from 1,188 at the end of August.
For the year ended August, the company’s net profit dropped 10% to Y22.05 billion due partly to higher costs of raw materials. Revenue climbed 17% to Y581.41 billion thanks to new store openings.
Write to Kosaku Narioka at [email protected]
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