Ryohin Keikaku (7453) Q2 2025 earnings summary

Executive summary

• Revenue and profit reached record highs year-over-year, with operating revenue for the six months ended February 28, 2025, up 19.4% to 382.0 billion yen and net income up 61.6% to 25.4 billion yen, driven by strong sales in Japan and China, new store openings, and operational efficiency.

• All business segments reported revenue and profit growth, with notable expansion in Japan, East Asia, and Southeast Asia & Oceania.

• Customer base expanded in Japan, especially for skincare and daily supplies; March sales hit all-time high, driven by MUJI Week.

• ESG initiatives advanced, including renewable energy studies, resource recycling, and recognition as No.1 in SDGs-related brand survey for the third consecutive year.

• Share price reached a six-and-a-half-year high, market cap surpassed 1 trillion yen.

Financial highlights

• Operating profit rose 49.8% year-over-year to 36.1 billion yen; operating profit margin improved to 9.5% due to cost reductions and lower SG&A ratio.

• Net income attributable to owners of parent was 25.4 billion yen, aided by a 2.0 billion yen tax effect from European business reorganization.

• Comprehensive income increased 29.4% year-over-year to 31.5 billion yen.

• Total assets as of February 28, 2025, were 540.5 billion yen, with net assets at 323.4 billion yen and a shareholders' equity ratio of 59.0%.

• Q2 operating profit increased 38.5% year-over-year to 14.1 billion yen; Q2 operating profit margin improved by 1.2pp to 7.7%.

Outlook and guidance

• Full-year operating revenue forecast raised to 770.0 billion yen (+16.0 billion yen), operating profit to 67.0 billion yen (+3.0 billion yen); both expected to reach record highs.

• Net income forecast for the year is 45.5 billion yen, with EPS projected at 171.63 yen.

• Second-half operating profit expected to decline slightly due to foreign exchange impacts, but sales outlook in Japan revised upward.

• FY2027 targets: 880.0 billion yen operating revenue, 79.0 billion yen operating profit, 9.0% margin; store count to reach 1,650.

• Company targets 1 trillion yen in operating revenue and 10% operating profit margin globally at an early stage.