Muji Owner Ryohin Keikaku Stock Soars After Raising Full-Year Earnings Forecast

Shares of Ryohin Keikaku (TYO:7453), the operator of the Muji retail chain, surged to a record high on Monday after the Japanese retailer upgraded its full-year earnings outlook, citing strong overseas sales growth and improved profitability.

The company's Tokyo-listed shares climbed as much as 19% to an all-time high of 4,311 yen, reflecting investor optimism following the stronger-than-expected guidance.

Ryohin Keikaku now expects operating revenue of 907 billion yen for the fiscal year ending August 31, up from its previous forecast of 887 billion yen. It also raised its operating profit forecast to 98 billion yen, compared with the earlier estimate of 89 billion yen, highlighting continued momentum across its international business.

The retailer also increased its net profit forecast to 67 billion yen, up from 62 billion yen, while maintaining its planned annual dividend at 32 yen per share, signaling confidence in its financial position despite the higher earnings outlook.

For the first nine months ended May 31, Ryohin Keikaku reported operating revenue of 690.8 billion yen, representing a 16.9% year-over-year increase. Net profit attributable to shareholders rose 34.3% to 58.6 billion yen, underscoring the company's strong operational performance.

A major driver of the earnings growth was the retailer's expanding overseas business. Sales in East Asia climbed 29.3%, fueled by solid consumer demand in mainland China, Taiwan, Hong Kong, and South Korea. The company continues to benefit from the popularity of the Muji brand across key Asian markets.

Ryohin Keikaku also reported higher profitability as operational efficiencies strengthened margins. The company said expanded in-house production reduced manufacturing costs, while fewer discount campaigns helped improve gross profit margins.

The upgraded outlook highlights Ryohin Keikaku's ability to sustain growth through international expansion and cost management. Investors appear encouraged by the retailer's resilient earnings, improving margins, and strong overseas demand, reinforcing confidence in Muji's long-term growth strategy despite a challenging global retail environment.