ENVALITH
株式会社良品計画 logo

RYOHIN KEIKAKU CO., LTD.

7453・Prime Market・Retail Trade

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株式会社良品計画 logo
RYOHIN KEIKAKU CO., LTD.7453

Business

Ryohin Keikaku Co., Ltd. became independent from Seiyu in 1989 and operates its business centered on the 'MUJI' brand. With a Domestic Business comprising over 700 stores in Japan as its earnings base, the company expands globally across four segments: East Asia Business (China, Taiwan, Hong Kong, and Korea), Southeast Asia & Oceania Business, and Europe & Americas Business. Its product categories are wide-ranging, including apparel and accessories (¥285,294 million), household goods (¥368,184 million), and food (¥104,655 million). In addition to retail sales at directly operated stores, the company provides services spanning all aspects of daily life, such as Food & Beverage Sales (Café&Meal MUJI), MUJI HOUSE (Housing Sales), and campsite operations. Its main customers span a broad range of age groups who value quality in daily life, and its philosophy of offering simple, functional products at affordable prices has gained support both in Japan and overseas.

Business Model

The company adopts a vertically integrated business model in which the group handles everything in-house, from product planning and development to sourcing, distribution processing, and sales at directly operated stores. Leveraging a global sourcing network with procurement bases in Cambodia, India, Vietnam, and Indonesia, the company continues to drive improvements in cost ratio. In FY2025 (ending August 2025), the gross profit margin reached 51.4% (up 0.5 points year on year), and combined with a decline in the SG&A ratio (42.0%, down 0.4 points year on year) driven by sales expansion, this resulted in an operating profit margin of 9.4%.

Company Strengths

In FY2025 (ending August 2025), operating revenue reached ¥784,629 million (+18.6% YoY), operating profit reached ¥73,840 million (+31.5% YoY), and net income attributable to owners of parent reached ¥50,846 million (+22.3% YoY), with operating revenue and profit at every stage renewing all-time highs. All four segments—Domestic, East Asia, Southeast Asia & Oceania, and Europe & Americas—achieved both revenue and profit growth.

The East Asia Business posted operating revenue of ¥222,247 million and segment profit of ¥42,794 million, for a profit margin of 19.3%, the highest profitability among all segments. In addition to online sales growth, improved cost ratios, and restrained price cuts in mainland China, Taiwan and Hong Kong also achieved revenue and profit growth, making the segment the core driver of overseas earnings.

Operating cash flow for FY2025 (ending August 2025) increased significantly to ¥73,355 million from ¥58,504 million in the previous period. Capital expenditures of ¥40,994 million (for new store openings, renovations, information systems, and distribution centers) were funded from internal resources, while maintaining a period-end cash balance of ¥135,359 million. With a financial structure close to debt-free, the company is achieving both growth investment and shareholder returns simultaneously.

ENVALITH's Perspective

Operating profit of ¥80,822 million for the cumulative nine months of FY2026 (ending August 2026) corresponds to 82.5% of the upwardly revised full-year forecast of ¥98,000 million. Profit growth of +36.0% year-on-year significantly exceeds revenue growth (+16.9%), demonstrating clear profit leverage. The likelihood of achieving the full-year forecast (revised as of July 10, 2026) is high, with further upside potential also present.

The East Asia Business (operating revenue of ¥212,812 million) is the largest overseas segment, accounting for approximately 30.8% of the group total, and is highly sensitive to consumer trends on the Chinese mainland. Externally, the pace of recovery in personal consumption in China and the impact of US-China trade friction could be major factors driving performance volatility. While the promotion of scrap-and-build store renewal on the Chinese mainland is contributing to improved store quality, it should be noted that in the event of macroeconomic deterioration, downside risk to existing store sales tends to become more apparent.

In the third quarter, the company recorded compensation and other income (extraordinary income of ¥1,715 million) related to a system outage caused by ransomware, while recording a loss on disposal of fixed assets of ¥3,070 million as an extraordinary loss. E-commerce sales are said to be gradually recovering since entering the third quarter, but the full extent of the opportunity loss due to the system outage and the timing of complete recovery continue to warrant close monitoring. The Europe & Americas Business achieved increased revenue and profit, but the segment profit margin remained at 14.6%, and upfront investment ahead of the planned opening of a Paris flagship store in FY2027 (ending August 2027) may affect profit margins going forward.

Growth Strategy

Deepening the domestic foundation combined with simultaneous growth across all overseas segments, driving the

By combining promotional initiatives such as

Through scrap-and-build store renewal in mainland China, store quality was improved while sales grew across all categories, centered on household goods and food. Taiwan, Hong Kong, and Korea also achieved higher revenue and profit, bringing the East Asia Business segment profit margin to 21.3% (an improvement from the same period of the previous year). Improvement in the SG&A ratio is accelerating profit growth.

Existing store sales grew due to sales floor improvements and revisions to sales plans in each region, while brand recognition improved thanks to the strong performance of the Thailand and Vietnam flagship stores opened in November 2025. Cumulative nine-month operating revenue growth reached +34.7% year on year, the highest growth rate among all segments, while segment profit also improved sharply, up 55.5%.

Following business restructuring and the closure of unprofitable stores in the previous fiscal year, the profit base has been strengthened, and sales at existing stores and via EC in Europe and North America have been performing well. Store openings in North America resumed from FY2026 (ending August 2026), moving into a store network expansion phase. Preparations are underway for the Paris flagship store opening planned for FY2027 (ending August 2027), which is expected to enhance brand recognition in Europe.

Group functions continue to be expanded, including the addition of MUJI ENERGY LLC as a newly consolidated subsidiary. Through the Global Sourcing Business (Other segment), the geographic expansion of the overseas sourcing network and the enhancement of quality control are driving cost reductions and a more stable product supply system across the Group. Efforts are also underway to establish a responsible sourcing framework, including the formulation of coffee bean sourcing guidelines.

Last updated: July 17, 2026