Shares of Japanese retailer Ryohin Keikaku are experiencing significant volatility after a ransomware incident crippled operations at its logistics provider. While the stock showed modest recovery in recent trading, substantial uncertainty remains regarding the duration of the ongoing online sales suspension.
Strong Fundamentals Meet Unexpected Challenge
Just days before the cybersecurity incident emerged, Ryohin Keikaku had presented stellar financial projections for the fiscal year ending August 2025:
- Revenue growth of 18.6% to ¥784.6 billion
- Operating profit surge of 31.5% to ¥73.8 billion
- Net income increase of 22.3%
These record results were primarily fueled by robust international performance across China, Europe, and North America. The company’s aggressive global expansion strategy added 107 new Muji stores worldwide, bringing its total footprint to 1,412 locations.
For the current business year, management had forecast additional records with revenue expected to climb 9.6% to ¥860 billion and operating profit projected to advance 7.0% to ¥79.0 billion. These optimistic projections now face scrutiny following the cybersecurity disruption.
Logistics Partner Breach Halts E-Commerce Operations
The company was forced to completely suspend operations of its Muji online store in Japan on Monday following a ransomware attack targeting Askul Corp, its logistics partner. Since Sunday evening, order processing and shipping capabilities have been completely disabled.
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Although Ryohin Keikaku’s internal systems remained uncompromised, the timeline for restoring full e-commerce functionality remains uncertain. The incident highlights the vulnerability of retail operations to disruptions within supply chain partnerships.
Market Reaction Contrasts With Broader Index Performance
News of the cyberattack triggered immediate selling pressure on Ryohin Keikaku shares. On Monday, the stock declined 2.5% even as Japan’s Nikkei Index reached record highs—creating a stark divergence from the broader market trend.
Recent trading sessions have shown some stabilization, with shares currently trading at ¥3,080, representing a 0.88% recovery. Market participants are questioning whether this rebound represents a temporary pause or sustainable recovery amid the ongoing operational challenges.
Recovery Timeline Critical for Near-Term Performance
The duration of the online sales suspension and potential reputational damage from the incident represent key concerns for investors. The ability of Askul Corp to rapidly resolve the ransomware situation will likely determine the short-term trajectory of Ryohin Keikaku’s share price.
As the company navigates this unexpected operational hurdle, market attention remains focused on when normal e-commerce operations can resume and whether the incident will impact the otherwise strong fundamental outlook for the Muji brand owner.
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