Adastria shares soared Monday morning after the Japanese apparel retailer posted strong first-half results and raised the full-year guidance, citing price increases and strong consumer spending on fashion.
The company’s shares were recently 14% higher at 3,280 yen after rising as much as 16% earlier.
Adastria said Friday after market close that its net profit climbed 82% to Y7.09 billion ($47.5 million) for the six-month period ended Aug. 31. First-half revenue grew 18% to Y132.90 billion.
The apparel retailer said spending on fashion was strong among consumers as pandemic-related restrictions were lifted, foreign tourists returned and private consumption continued to improve.
Although a weaker yen increased cost of goods sold, the company said it was also able to raise prices and limit discounts. It boosted pay for workers 6% on average.
The company lifted its earnings forecasts for the fiscal-year ending February 2024. It now expects revenue will increase 11% to Y270.00 billion, up from the Y260.00 billion previously projected, and that net profit will rise 59% to Y12.00 billion, up from the Y9.40 billion previously expected.
Adastria also increased its fiscal-year dividend projections. It plans to pay Y80 a share in dividends this fiscal year, up from its previous view of Y65 and compared with the dividends of Y60 it paid last fiscal year.