By Kosaku Narioka
Nitori Holdings Co. shares fell sharply Monday morning after reporting its first-half net profit dropped 4.5% due to higher costs.
The shares were recently 2.6% lower at 11,870 yen after falling as much as 5.9% earlier.
Nitori said Friday after the market's close that net profit dropped to Y51.46 billion ($355.6 million) for the six-month period ended Aug. 20 from Y53.89 billion a year earlier. Revenue increased 2.1% to Y423.07 billion.
Meanwhile, costs of sales rose 5.6% as the costs of imports climbed due to a weaker yen and higher crude-oil prices. Selling, general and administrative expenses climbed 4.3%.
Nitori also said it decided to exit the U.S. market and expand its business in Asia. It plans to add a total of 29 stores in China, Taiwan, Malaysia and Singapore in its second half.
Nitori kept its earnings guidance for the fiscal year ending March 31 2023. It expects net profit of Y104.00 billion on revenue of Y963.60 billion.
The Topix subindex for retailers was recently 2.0% lower and the Nikkei Stock Average was up 0.6%.
Write to Kosaku Narioka at email@example.com
(END) Dow Jones Newswires