Nitori harnesses yen as centerpiece of profit strategy

Furniture retailer's hefty buys of forward contracts guard against market swings

0622N Nitori

Furniture retailer Nitori has raised profit and revenue for 30 consecutive years.

TOKYO -- Furniture retailer Nitori Holdings excels at snapping up dollar-denominated forward contracts to lock in advantageous rates for importing the goods it sources abroad, letting the Japanese company hedge against foreign exchange fluctuations.

"When I hear '100 orders from an importer,' I know Nitori's made a move," said a foreign exchange manager at a Japanese megabank. One order is worth $1 million.

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