Shares of Pan Pacific International Holdings Corp fell 11% on Thursday after the operator of the Don Quijote discount chain provided guidance for fiscal 2027 that fell short of profit expectations, pressuring the stock despite a rise in revenue.
The Tokyo-based retailer reported fiscal 2026 revenue of ¥2.45 trillion, an 8.8% increase from the prior year, while operating profit rose 7.7% to ¥174.8 billion. The company projected fiscal 2027 revenue of ¥2.69 trillion, a 9.9% year-over-year gain, but did not match market forecasts for stronger profit growth.
The stock’s decline followed a consensus "buy" rating among analysts, who had set 12-month price targets well above current levels. The gap between expectations and delivered guidance contributed to selling pressure, analysts said. The broader market also came under pressure as Japanese government bond yields surged, dampening risk appetite across equities.
The Nikkei 225 dropped 3.3% on the day, extending losses in a broader risk-off environment driven by rising borrowing costs. Pan Pacific International’s shares had been trading near multi-year highs prior to the announcement, but the weak outlook prompted a sharp pullback.
