Ryohin Keikaku shares hit record high on Muji expansion plans

Ryohin Keikaku, the operator of Muji, saw its shares reach a record high in Tokyo trading following better-than-expected annual results and the announcement of an aggressive international expansion strategy. The company's stock rose as much as 10.7%, marking its largest gain in over a year.

Ryohin Keikaku projects operating income to grow approximately 10% to ¥114 billion for the fiscal year ending August 2027, surpassing average analyst estimates. The company reported broad-based growth across its four geographic segments, with revenue exceeding expectations globally. Profitability in Japan improved through efficient store operations, restrained markdowns, and lower costs from in-house production, while mainland China saw sales growth across all product categories.

President Satoshi Shimizu stated that the company is shifting its focus toward growth investment. Muji plans to expand its footprint in Europe, the Americas, India, and the Middle East. Specifically, Shimizu noted that the company intends to accelerate store openings across the United States. Growth was also noted in Taiwan, Hong Kong, South Korea, Southeast Asia, Oceania, Europe, and North America.