Rebuilding the Domestic Eyelash Care Business

「セグメント損失(営業損失)は3百万円（前年同期は7百万円の営業利益）となりました。」

「New trainees have completed the required training and are beginning to work at stores in stages. In addition, we are expanding the range of services that can be offered at 2 stores without significantly increasing staff numbers by introducing new equipment.」

「Specifically, we are shortening the lead time from recruitment to deployment at stores by encouraging existing staff to return to work and strengthening the head office's training function, while improving employee retention through reviews of work arrangements and compensation systems.」

「In the operation of eyelash salons, we worked to secure personnel, stabilize operations in the field, and improve utilization. We also sought to expand sales by strengthening customer acquisition through social media promotions and conducting promotional activities on our EC site combining sales campaigns, email newsletters, and telephone sales. As a result, revenue was ¥73 million, down 11.0% year on year. Because we worked to reduce salon expenses, segment profit (operating profit) was ¥7 million, compared with a segment loss of ¥4 million in the same period of the previous year, an improvement of ¥11 million year on year.」

「In the Eyelash Care business, we are establishing an optimal store structure under the current business environment by reviewing the number of stores, as carried out in the previous consolidated fiscal year. We also introduced a new reservation management system. As a result of efforts to improve user convenience and reduce expenses, the business is now expected to return to profitability.」

「Following the reduction in the number of stores carried out in the previous consolidated fiscal year, we have established what we consider the optimal store network under the current business environment and aim to return to profitability during the current fiscal year by strengthening our strategy for expanding product sales. As a result, revenue was ¥82 million, down 12.4% year on year, and accounted for 14.7% of total revenue. The segment loss (operating loss) was ¥4 million, compared with a segment loss of ¥7 million in the same period of the previous year, an improvement of ¥3 million year on year.」

「In this business, we reduced the number of unprofitable stores by 1 during the previous fiscal year while strengthening overseas product sales, and are working to achieve breakeven at a business scale suited to the current operating environment. As a result, revenue was ¥42 million, down 16.3% year on year. Despite efforts to reduce expenses, including salon personnel expenses, the segment loss (operating loss) was ¥4 million, compared with a segment loss of ¥2 million in the same period of the previous year, representing a ¥1 million widening of the loss. We aim to return to profitability during the current fiscal year.」

「In the salon division of this business, although we closed 1 store during the current consolidated fiscal year, namely the Shinjuku Marui store in November 2023, the increase in customer numbers at other stores kept the decline in sales modest.」

「In the Eyelash Care business, sales and customer visits at each salon location turned positive year on year as the COVID-19 pandemic showed signs of subsiding. However, because the number of personnel in operation has declined, we will strengthen recruitment and establish an operating structure at salon locations.」

「In the salon business, net sales declined due to the closure of 3 stores during the current consolidated fiscal year: the Takadanobaba, Minatomirai, and Kitasenju stores. However, through measures including a discount strategy and initiatives to improve repeat rates, sales at existing stores reached 131% of the previous year's level.」

「In this business, the Company continued to reduce expenses, including personnel costs, following the closure of unprofitable stores before the second quarter. The reduced number of stores resulted in fewer customers and lower net sales than in the same period of the previous year, but measures to direct customers from closed stores to existing stores succeeded in moving a certain number of customers to the existing stores. As a result, net sales were ¥159 million, down 3.2% year on year, and the sales mix was 85.2%. The segment loss (operating loss) was ¥47 million, an improvement of ¥47 million from the same quarter of the previous year, when the Company recorded an operating loss of ¥95 million.」

「During the second quarter accounting period, we closed 3 unprofitable stores and reduced expenses, including personnel expenses. Although we reduced the number of stores, we were able to minimize the decline in sales and customer visits by directing customers from the closed stores to existing locations.」

「Although we closed the unprofitable Nakano store in the previous fiscal year, the other stores have recovered to a level sufficient to make up for the closed store's sales. Regarding products, we exhibited at trade shows as in the previous year and extended the period of simultaneous sales through our online site, resulting in sales of approximately 110% of the previous year's level. Through expense reductions, including cuts in salon personnel expenses, the segment loss (operating loss) was ¥14 million, an improvement of ¥22 million from the previous year's ¥37 million loss.」

「Annual customer visits increased 9.7% year on year.」

「At our salons, we brought forward the introduction of the new menu, resulting in a substantial increase in new customer acquisition at all locations to 226.3% of the previous year's level for the September-November total. However, because the new menu has a lower treatment price than existing menus and its effects last longer, extending the interval between visits, revenue has declined in the short term.」

「At salon locations, practitioners have completed acquiring the skills required for the new menu, and services using the new menu have been offered since September. Regarding products, while advancing the development of popular products, we will sell inventory overseas in response to changes in the market.」

「In the Eyelash Care business, sales of eyelash serums have grown substantially to 166% of the level in the same period of the previous year, as the increased wearing of masks has drawn greater attention to the eye area, so we will focus on selling eyelash serums. In addition, having finalized an agreement with a new overseas distributor, we intend to focus more on overseas transactions. At our salons, the introduction of a new treatment menu at some locations in the previous fiscal year led to a 660% increase in new customers, so we plan to bring forward the rollout schedule for all locations.」

「In fact, during the third quarter of the consolidated accounting period, we began selling through mass retailers and made a strong start, with products selling out day after day when sales staff were dispatched to the relevant retailer. Although e-commerce sales have been slow to get off the ground, we will seek to increase sales by raising advertising spending and pursuing synergies with sales through the mass retailers mentioned above.」

「Regarding products, a new eyelash extension product introduced at salon locations in June 2020 was very well received, with a treatment adoption rate of approximately 70% at the stores. As a result, we began selling the product as a professional-use product in mid-September 2020 on an expedited basis.」

「To attract a broader range of new customers, we created a lower-priced brand than our existing stores, PLURECIL by PROCAREEyelash, and opened a new location in Takadanobaba. In product sales, we will promote cosmetics that enable at-home eyelash care to customer segments that do not receive eyelash extensions, such as customers who receive eyelash perms and those with natural eyelashes. In addition, at the end of June 2020, we consolidated the head office of 株式会社プロケアラボ, our wholly owned subsidiary responsible for the Eyelash Care business, with our head office in Chiyoda Ward, formerly located in Meguro Ward, in order to reduce expenses such as rent.」

「Regarding sales at salon locations, the utilization rate, which initially declined due to employee departures and other factors, improved after training for newly hired employees was completed, although it has not yet returned to its previous level.」

「In the Eyelash Care business, we will first strengthen recruitment of practitioners and establish an operating structure at salon locations. In addition, we will train staff to enhance their product knowledge and ability to make proposals suited to customer needs, improve customer communication and sales capabilities, and strengthen efforts to attract customers to our stores by disseminating information via social media about new services and extension design proposals. In addition, although products such as eyelash extensions have traditionally been sold on a B2B basis in this business, we have begun handling cosmetics, mainly basic skincare products, for B2C sales. Through these measures, we will work to expand revenue.」

「In the Eyelash Care business, we will first strengthen recruitment and establish an operating structure at salon locations. In addition, we will train staff to enhance their product knowledge and ability to make proposals suited to customer needs and improve customer communication and sales capabilities.」

「In the Eyelash Care business, we will first strengthen recruitment and establish an operating structure at salon locations. In addition, we will train staff to enhance their product knowledge and ability to make proposals suited to customer needs, improve customer communication and sales capabilities, and strengthen efforts to attract customers to our stores by disseminating information via social media about new services and extension design proposals.」

「We reviewed our personnel system and product suppliers and reduced expenses, while working to provide higher-quality eyelash extension services. As a result, revenue was ¥492 million, down 28.1% year on year, and accounted for 68.8% of total revenue. Segment profit (operating profit) was ¥60 million, compared with an operating loss of ¥2 million in the previous year.」

「As a result, net sales were ¥379 million, down 28.8% year on year, and the sales mix was 62.1%. Segment profit (operating profit) was ¥49 million, an improvement of ¥43 million, or 699.1% year on year, from the same quarter of the previous year.」

「In this business, during the first quarter of the fiscal year, as part of the restructuring of the Group's business portfolio, the Company sold its interest in its former Hong Kong subsidiary, Plurecil Holdings Limited, removing it from the scope of consolidation, while also reviewing its personnel systems and product suppliers, reducing expenses, and working to provide higher-quality eyelash extension services. As a result, net sales were ¥270 million, down 25.8% year on year, and the sales mix was 59.7%. Segment profit (operating profit) was ¥41 million, an improvement of ¥34 million, or 503.0% year on year, from the same quarter of the previous year.」

「In the eyelash-care business, we will strengthen efforts to attract customers to our stores by improving staff product knowledge and their ability to make proposals suited to customer needs, enhancing customer communication and sales capabilities, and disseminating information via social media on new services and extension designs. We will also work to rebuild the existing domestic business by reviewing the personnel system and product suppliers and reducing expenses.」

「In the eyelash-care business, we will strengthen efforts to attract customers to our stores by improving staff product knowledge and their ability to make proposals suited to customer needs, enhancing customer communication and sales capabilities, and disseminating information via social media on new services and extension designs.」

「We will also work to rebuild our existing domestic businesses by advancing a review of our personnel systems and product suppliers, as well as expense reductions.」

「We will also work to rebuild our existing domestic businesses by advancing a review of our personnel systems and product suppliers, as well as expense reductions.」

「The Company is currently working to rebuild its domestic eyelash-care business, advancing a review of its personnel system and product suppliers, as well as expense reductions.」