Japan's Shimamura posts record first half profit, holds prices steady
03/10/2022 10:32
TOKYO, Oct 3 (Reuters) - Shimamura Co 8227.T , Japan's
second-biggest clothing seller, reported record half-year profit
on Monday as sales increased at the low-cost retailer amid
surging inflation throughout the economy.
Operating profit in the six months to Aug. 20 jumped 14% to
28.9 billion yen ($199 million), a record for the first half,
the company said after the market closed. It held its full-year
profit estimate at 52.1 billion yen.
"The cost inflation situation is continuing, of course, but
at the moment we're not seeing a big impact," chief executive
Makoto Suzuki told reporters.
The company, which competes in lower-cost basics, may be
benefiting as consumers shift towards cheaper goods to account
for higher prices elsewhere in the economy.
Other major Japanese retailers haven't fared so well. Shares
in furniture seller Nitori Holdings Inc 9843.T plunged on
Monday after the company reported an 11% drop in first-half
profit and said it may have to raise prices by 10% to account
for increasing costs and the weak yen.
Nishimatsuya Chain Co 7545.T , a major seller of children's
clothes, last week slashed its full-year profit forecast, citing
the yen's decline.
($1 = 145.0700 yen)
(Reporting by Rocky Swift; Editing by Kirsten Donovan)
((rocky.swift@thomsonreuters.com;))