Nishimatsuya Chain, the renowned Japanese retailer specializing in baby clothing, witnessed a remarkable surge in its shares, surging by 6.16% to reach 1,670 yen on Thursday. This impressive uptick in share value came on the heels of robust first-half financial results, including a substantial net profit growth of Y4.76 billion ($31.8 million) and a revenue increase to Y88.47 billion, even amidst a broader downturn in the Nikkei Stock Average.
The key driver behind Nishimatsuya Chain’s stellar performance was the exceptional demand for spring and summer clothing, baby formula, and diapers. Additionally, the company’s strategic expansion efforts played a pivotal role, with the opening of 33 new stores contributing significantly to its growth. This expansion brought the total number of Nishimatsuya Chain outlets to an impressive 1,090.
In a move to reward its shareholders, Nishimatsuya Chain also announced plans to increase dividends per share from Y26 to Y27 and initiate a share buyback program worth Y300 million. Looking ahead, the company has set ambitious forecasts, anticipating a net profit of Y9.28 billion and total revenue of Y180 billion.
