Adastria Co. shares rose sharply Friday morning, after the apparel retailer raised its fiscal-year earnings guidance following strong nine-month results, citing a recovery in clothing consumption with the lifting of pandemic-related movement restrictions.
Shares were recently 14% higher at 2,284 yen after rising as much as 16% earlier.
Adastria said Thursday after market close that net profit more than doubled to Y7.62 billion ($57.3 million) in the nine-month period ended in November, from Y3.53 billion a year earlier. Nine-month revenue rose 21% to Y177.03 billion thanks to increased sales of clothes across various brands.
The apparel retailer said that demand for fashion-related consumption remained strong thanks to reduced Covid-19 restrictions despite a surge in energy prices and economic uncertainty.
Adastria expects revenue to rise 19% to Y240.00 billion and net profit to climb 67% to Y8.20 billion in the fiscal year ending in February 2023. It previously projected Y230.00 billion in revenue and Y6.3 billion in net profit.