Revenue Growth and Store Openings Drive Positive Results
Shares of Nishimatsuya Chain, a leading Japanese retailer specializing in baby clothing, experienced a significant surge on Thursday morning, following the announcement of increased net profit and strong sales growth attributed to the opening of new stores.
The shares saw a rise of 3.6% to 1,629 yen, reaching a peak of 6.2% earlier on. Meanwhile, the Nikkei Stock Average witnessed a slight decline of 0.8%, resting at 32,113.56.
Nishimatsuya reported that its net profit for the first half of the fiscal year ending on August 20 increased by 2.4% compared to the previous year, reaching Y4.76 billion ($31.8 million). The company also saw a growth in revenue of 4.7% to Y88.47 billion.
The retailer attributed its success to the strong sales of spring and summer clothes, driven by favorable weather conditions. Moreover, the sales of baby formula and diapers also contributed significantly to the positive results.
Although a weaker yen impacted the gross profit margin, the company managed to offset this by opening 33 new stores, resulting in an overall increase in revenue. The first half concluded with a total of 1,090 stores operating under the Nishimatsuya brand.
Looking ahead, Nishimatsuya plans to pay Y27.00 in dividends per share for the fiscal year ending on February 20, 2024, surpassing the previously projected Y26.00. In addition, the company announced its intention to repurchase shares worth up to Y300 million.
Despite these achievements, Nishimatsuya maintains its initial earnings forecasts for the fiscal year, expecting revenue to rise by 6.2% to Y180.00 billion and net profit to climb by 21.5% to Y9.28 billion.