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Introduction & Market Context
Ryohin Keikaku Co., Ltd. (TYO:7453), the Japanese retailer better known as MUJI, presented its financial results for the fiscal year ending August 2025 on October 10, showing substantial growth across all business segments. The company’s stock closed at 2,727 yen on the presentation day, up 2.77% or 75.5 yen, reflecting positive market sentiment toward the results.
The retailer, known for its minimalist design aesthetic and "no-brand" philosophy, has successfully expanded its global footprint while maintaining strong growth in its home market of Japan. The presentation, delivered by President Satoshi Shimizu and Executive Officer Kenta Hochido, highlighted record-breaking performance that exceeded the company’s revised forecasts from July.
Executive Summary
Ryohin Keikaku reported that its product development and promotion strategy led to results that surpassed initial forecasts, with particularly strong performance in overseas markets.
As shown in the following highlights from the company’s presentation:
The company achieved record highs in operating revenue and all levels of profit for FY25/8, exceeding the revised plan announced in July. Strong sales in overseas business, especially mainland China, Europe, and North America, contributed significantly to this performance. The company also noted that its strategy to position skincare as a global core product category was particularly successful.
Looking ahead, management indicated that progress is currently one year ahead of schedule compared to the original three-year mid-term plan covering FY25/8 - FY27/8.
Detailed Financial Analysis
The consolidated financial results for FY25/8 showed impressive growth across all key metrics, as detailed in the following table:
Operating revenue rose 18.6% year-over-year to 784.6 billion yen, while operating profit jumped 31.5% to 73.8 billion yen. The operating profit margin improved to 9.4%, reflecting enhanced operational efficiency. Net income attributable to owners of parent increased 22.3% to 50.8 billion yen.
The company has demonstrated consistent growth over the past five years, with significant acceleration in recent periods:
Since FY21/8, Ryohin Keikaku has increased its operating revenue by more than 300 billion yen and its operating profit by more than 30 billion yen, demonstrating the effectiveness of its expansion strategy and product development initiatives.
A key factor in the improved profitability was the company’s ability to control selling, general, and administrative (SG&A) expenses. Despite the expansion of operations, the SG&A ratio improved by 0.4 percentage points to 41.9%:
The company achieved this improvement through optimization of logistics operations, efficient personnel management in Japan, and improved rent-to-sales ratios at suburban stores where rent levels are lower.
Regional Performance Highlights
All business segments achieved year-over-year growth in both revenue and profit, with particularly strong performance in East Asia:
The Japan business, which accounts for approximately 60% of total revenue, saw operating profit margin improve to 11.1%. East Asia, dominated by mainland China operations, achieved an impressive 19.3% operating profit margin. Europe and North America showed significant margin improvement, increasing by 2.3 percentage points to 16.4%.
The mainland China business was a particular highlight, with like-for-like (LFL) store and e-commerce sales growing 10.0% year-over-year. The company attributed this success to several strategic initiatives:
The company has increased store sizes in China while implementing a scrap-and-build strategy to optimize its retail footprint. Online sales were driven by active marketing activities, and the introduction of made-in-Japan skincare products proved particularly successful. Household goods and food categories showed strong performance in the Chinese market.
Store Expansion Strategy
Ryohin Keikaku continued its global expansion, with the total number of MUJI stores reaching 1,412 as of August 31, 2025, representing a net increase of 107 stores year-over-year:
The company opened 71 new stores in Japan while closing 11, resulting in a net increase of 60 stores to reach a total of 683 domestic locations. Overseas, the company added a net 47 stores to reach 729 locations, with the most significant expansion occurring in mainland China (net increase of 24 stores) and Southeast Asia and Oceania (net increase of 19 stores).
Forward-Looking Statements
Looking ahead to FY26/8, Ryohin Keikaku expects to achieve record highs in operating revenue and profits for the third consecutive year:
The company projects operating revenue to grow 9.6% year-over-year to 860.0 billion yen, with operating profit increasing 7.0% to 79.0 billion yen. Net income attributable to owners of parent is expected to rise 4.2% to 53.0 billion yen.
In addition, the company announced plans to increase its dividend, with the year-end dividend for FY25/8 and the projected dividend for FY26/8 both set to rise. The dividend per share is projected to increase from 50 to 56 yen before a planned two-for-one stock split.
Management emphasized that this performance puts them one year ahead of schedule compared to the original three-year mid-term plan, positioning the company for continued strong growth through its eight strategic growth drivers.
Full presentation:
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