By Kosaku Narioka
Ryohin Keikaku shares rose sharply Monday morning after the MUJI owner’s third-quarter net profit more than doubled from a year earlier thanks to a recovery in sales in China and increases of product prices in Japan.
The shares were recently 20% higher at 1,653.5 yen after rising as much as 22% earlier.
Ryohin Keikaku said Friday after market close that net profit rose to Y11.3 billion ($79.5 million) for the quarter ended May 31 from Y5.2 billion in the year-earlier period.
The operator of MUJI stores said third-quarter revenue climbed 21% to Y152.4 billion as sales recovered in China from a slump last year caused by the Covid-19 pandemic measures and thanks to new store openings at home and abroad.
Revenue from mainland China grew 68% to Y26.8 billion, while the number of stores increased to 1,172 worldwide at the end of May from 1,055 a year earlier.
Third-quarter operating-profit margin improved by 3.5 percentage points from a year earlier to 8.2% due partly to increases in products prices in Japan.
Ryohin Keikaku kept its earnings projections unchanged for the fiscal year ending in August. It projects revenue to increase 18% to Y585.00 billion and net profit to fall 24% to Y18.60 billion.
Write to Kosaku Narioka at [email protected]
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