By Kosaku Narioka
Nishimatsuya Chain shares rose sharply Thursday morning after the Japanese retailer of baby clothes’ first-half net profit increased on sales growth and new store openings.
The shares were recently 3.6% higher at 1,629 yen after rising as much as 6.2% earlier. The Nikkei Stock Average was recently down 0.8% at 32113.56.
Nishimatsuya said Wednesday after market close that net profit increased 2.4% from a year earlier to Y4.76 billion ($31.8 million) for the six-month period ended Aug. 20 as revenue grew 4.7% to Y88.47 billion.
The Japanese retailer of apparel and other products for babies and children said that spring and summer clothes sold well thanks to warmer weather. Sales of baby formula and diapers were also strong, it said.
Nishimatsuya said a weaker yen weighed on gross profit margin, while new store openings helped drive revenue growth. It opened 33 new stores and closed 10, bringing the total number of stores to 1,090 at the end of the first half.
The company said it planned to pay Y27.00 in dividends per share for the fiscal-year ending Feb. 20, 2024, up from the Y26.00 previously projected. It also announced a plan to buy back up to Y300 million in shares.
Nishimatsuya kept its fiscal-year earnings forecasts. It continues to expect that revenue will rise 6.2% to Y180.00 billion and that net profit will climb 21.5% to Y9.28 billion.
Write to Kosaku Narioka at [email protected]
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