Ryohin Keikaku Co., Ltd.

Ryohin Keikaku's segment results show that the highest operating margin is not in its domestic business but in East Asia, at 19.3%. In the fiscal year ended August 2025, the domestic business posted operating revenue of 470.1 billion yen and operating profit of 52.1 billion yen, for an operating margin of 11.1%, while the East Asia business recorded operating revenue of 222.2 billion yen and operating profit of 42.7 billion yen, for an operating margin of 19.3%, a gap of 8 percentage points. In the cumulative first three quarters of the fiscal year ending August 2026, the gap has not narrowed, with domestic at 13.1% and East Asia at 21.3%, as East Asia's growth continues to outpace domestic. The company says that in its mainland China business, sales grew across all divisions, led by household goods and food, and operating profit increased thanks to an improved selling, general and administrative expense ratio.

The Nikkei Stock Average fell in the morning session on the Tokyo Stock Exchange, ending the session at 67,786.86, down 770.87 points from the previous trading day. Escalating tensions in the Middle East and higher crude oil prices weighed on the market. Although the index briefly moved into positive territory, buying failed to sustain, and at one point the decline exceeded 1,300 points. With major semiconductor companies such as ASML of the Netherlands and TSMC of Taiwan set to report earnings this week, position-adjustment selling emerged in some related stocks. Among individual issues, Yaskawa Electric hit its daily limit down, while Ryohin Keikaku reached a new post-listing high after adjusting for a stock split. Mitsubishi UFJ Financial Group rose over 2 percent to become the top company by market capitalization. Trading value on the Tokyo Stock Exchange Prime Market amounted to 4.987968 trillion yen.

Ryohin Keikaku on the 10th revised upward its consolidated net profit forecast for the fiscal year ending August 2026, from 62 billion yen to 67 billion yen. This marks the second upward revision this fiscal year, lifting the year-on-year profit growth rate from 21.9 percent to 31.8 percent and setting the stage for a record profit. Sales have been strong, led by overseas operations, and profitability has improved alongside currency effects. The new forecast exceeded the average analyst estimate of 63.8 billion yen from 17 analysts.