Ryohin Keikaku

Research evidence excerpt

Ryohin Keikaku

Global Markets Research

28 July 2026Ryohin Keikaku

7453.T 7453 JP / EQUITY: JAPAN RETAILING

Updating our forecasts: We look for sustained profit growth Rating Remains Buy

Margins look likely to continue improving and we expect sales growth in Target price

Japan and overseas to continue to translate into profit growth Increased from JPY JPY 5,000

4,500

We reiterate our Buy rating, see even better prospects for margin improvement

We reiterate our Buy rating on Ryohin Keikaku. The company performed well in 26/8 Q3 Closing price 27 July 2026 JPY 4,313(Mar–May), with sales growth both in Japan and overseas translating into profit growth.

Q3 results showed ongoing benefits from reducing COGS by bringing production in-house, Implied upside +15.9%and we also got the impression that the company is making progress with controlling

SG&A costs. We think that prospects for further margin improvement have increased. We

expect margins to continue to improve thanks to ongoing benefits from bringing production Relative performance chart

in-house and cost efficiency gains. In Japan, we expect sales to be supported by

improvements in both merchandise and marketing, with the steady rollout of new products

and seasonal promotions. We expect sales in Japan to continue to steadily rise despite a

high prior-year comparison base. Overseas, we expect sales to increase further as the

company makes additional enhancements to merchandise and operations. We also

envision continued growth in store numbers in Japan and overseas. We recommend the

stock with a Buy rating, as we look for company-specific factors to drive earnings growth.

We still think the stock deserves to trade at a premium versus the average for retailers