Muji to post 10 percent YOY rise in operating profit

Japanese retailer Muji is expected to end its latest quarter with a 10 per cent year-on-year rise in group operating profit to about 10.5 billion yen (95.5 million dollars), a record for the period, publishes ‘Asia Times’.

Sales for the company that owns Muji, Ryohin Keikaku, will probably have similar growth to reach about 85 billion yen.

During the three months, the company opened 13 stores in Japan. Sales at directly run stores rose 8.1 percent in March and 7.3 percent in April. Growing demand for Muji brand processed foods, such as pasta sauces and freeze-dried rice, together with stronger sales of storage furniture, around 30,000 yen, will probably help lift per-customer sales on average between 2000 and 3000 yen, as inform trade media.

For the full year through to next February, Ryohin Keikaku – parent group to Muji - projects a 9 per cent rise in sales to 336.5 billion yen and a 10 per cent increase in operating profit to 38 billion yen. Both would be record-breaking levels, calls out ‘Asian Fashion News’.

Latest yen’s appreciation will probably hurt Ryohin Keikaku’s overseas earnings, warn analysts.