MUJI's Growth in China Slows on Currency Exchange, Increased Costs and Sale of Banned Products
Xu Wei
DATE:  Aug 28 2017
/ SOURCE:  Yicai
MUJI's Growth in China Slows on Currency Exchange, Increased Costs and Sale of Banned Products MUJI's Growth in China Slows on Currency Exchange, Increased Costs and Sale of Banned Products

(Yicai Global) Aug. 28 -- Ryohin Keikaku Co., or MUJI, a Japanese household and consumer goods retailer, expects to reach consolidated operating profits of JPY21 billion (USD192 million) for the period running from March through August 2017.

The figure is 6 percent higher than the same time last year to mark six straight years of rising profits in the period as Japan's domestic fashion and grocery sectors pick up while risk of decelerated growth in the country increased.

Operating income is pegged to hit JPY180 billion, up 11 percent.

However, net profits overseas could see a double-digit decline as Ryohin Keikaku's new stores upped income growth but negatively impacted profitability, analysts said.

China is a big market for MUJI, though sales in April declined as the yen stopped depreciating against the yuan, costs in China rose and the company sold products that are banned from being imported to China, state-owned broadcaster CCTV reported.

The China-based unit is in recovery, though yuan-denominated sales during April through June only increased 1.8 percent, much slower than the 5.8 percent growth in the first three months of the year. The drop in China in April will make it much more difficult for the firm to hit its 11-percent profit growth target in East Asia, where its key market is China.

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Keywords:   MUJI,Japan