Ryohin Keikaku Shares Face Market Pressure Despite Robust Sales Performance

Ryohin Keikaku Co., the operator of the MUJI retail brand, finds itself in a curious market position. The company continues to demonstrate remarkable operational strength with its 19th consecutive month of comparable sales growth, yet its share price is failing to reflect this fundamental success.

Sustained Growth Across All Channels

The retailer’s performance data for August 2025 reveals significant expansion across its business segments. Comparable store sales from directly managed locations, combined with online revenue, advanced by 6.1 percent compared to the same period last year. When accounting for all sales channels including online shops, the company achieved an even more substantial increase of 15.7 percent.

This consistent upward trajectory, now maintained for over a year and a half, has been driven by broad-based strength. The clothing category rebounded strongly as previous shortages of summer merchandise were resolved, while both household goods and food products continued their steady expansion.

Market Reaction Contrasts With Fundamentals

Despite these impressive operational results, financial markets responded negatively. On September 2, Ryohin Keikaku shares declined by 2.4 percent, ranking among the poorest performers within the Nikkei index. This suggests that investor concerns about profit-taking or broader market conditions are currently overshadowing the company’s positive business developments.

Should investors sell immediately? Or is it worth buying Ryohin Keikaku?

• Comparable Sales Growth (August 2025): +6.1% year-over-year
• Total Sales Growth (August 2025): +15.7% year-over-year
• Growth Streak Duration: 19 consecutive months
• Stock Performance: -2.4% on September 2

Stock Split Implementation

In a move aimed at enhancing market accessibility, Ryohin Keikaku has completed a 2-for-1 stock division. Originally approved on July 11, the split took effect on September 1. This corporate action doubled the number of outstanding shares from 280.78 million to 561.56 million.

The company anticipates that reducing the per-share price point will improve trading liquidity and attract a broader base of retail investors. This strategic initiative is expected to create a more dynamic trading environment over the long term.

Upward Revision of Fiscal Forecasts

Bolstered by this sustained period of strong sales performance, management has raised its full-year financial guidance for the business period ending August 2025. This upward revision of official forecasts demonstrates executive confidence in the company’s continued positive trajectory.