The Hello Kitty brand owner's earnings increased, and SANRIO saw a sharp rise as tourism spending in Japan surpassed pre-pandemic levels.

On November 2, the day before Japan's equity market was closed for a national holiday, shares surged as much as 11%, the highest in three months, after quarterly results exceeded analyst estimates. This year, the company's stock has increased by over 50%, which is twice as much as the benchmark Topix.

A bright spot in Japan's economic recovery has been inbound tourism, as foreign visitors' purchasing power has increased due to the weaker yen. As the number of foreign visitors returns to pre-pandemic levels, transportation companies ANA Holdings and West Japan Railway recently released positive reports.

A Sanrio statement claimed that the "brisk flow of both domestic customers and foreign tourists" had contributed to the company's success in the first half of the year. Sales increased by 43% over the previous year as a result.

Sanrio's operating profit for the entire year might exceed projections because of its cautious second-half outlook. An analyst at Mitsubishi UFJ Morgan Stanley Securities named Hirotoshi Murakami wrote in a note.