Improving Cosmetics Profitability by Closing the Flagship Store and Reducing Promotional Spending
First written in FY2025-H1. 6 of 7 entries say "Advanced", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2018: 4 of 36 companies on the "Worse" side.
27 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In the current consolidated fiscal year, sales in the mail-order division amounted to ¥104 million, down 19.6% from the previous fiscal year, while sales in the wholesale division amounted to ¥778 million, down 43.4%. Personnel, advertising and promotional expenses and other costs were also reduced as a result of the end of business activities.」
Although the cosmetics business reported lower sales, operating profit amounted to ¥48 million as personnel, advertising and other expenses were reduced in connection with the end of business activities. Profitability continued to improve. - FY2026-H1AdvancedAnnual report
「As the workforce was reduced in connection with the end of business activities, personnel expenses declined, while advertising and promotional expenses in Japan and overseas were also reduced. As a result, the cosmetics business reported sales of ¥725 million, down 3.4% year on year, and operating profit of ¥82 million, up 229.6% year on year.」
The workforce was reduced, personnel expenses declined, and advertising and promotional expenses were cut in connection with the end of the cosmetics business. Despite lower sales, operating profit increased 229.6% year on year to ¥82 million. Profitability has improved materially. - FY2025AdvancedAnnual report
「In addition to reducing advertising and promotional expenses in Japan and overseas, the Company improved its operating profit margin by closing the flagship shop established as part of its sales promotion activities. As a result, the cosmetics business reported sales of ¥1,506 million, down 2.7% from the previous fiscal year, and operating profit of ¥27 million, compared with an operating loss of ¥152 million in the previous fiscal year.」
Despite lower sales, the cosmetics business moved from an operating loss to operating profit as a result of reduced advertising and promotional expenses and the closure of its flagship shop. A subsequent event indicates a policy of ending the business activities by the end of March 2026. - FY2025-H1First statedAnnual report
「In addition to reducing advertising and promotional expenses in Japan and overseas, the Company improved its operating profit margin by closing the flagship shop established as part of its sales promotion activities. As a result, the cosmetics business reported sales of ¥751 million, down 3.6% year on year, and operating profit of ¥25 million, compared with an operating loss of ¥72 million in the year-earlier period.」
The cosmetics business reduced advertising and promotional expenses and closed its flagship shop. Although sales declined, the business moved from an operating loss to operating profit, and the disclosure describes an improvement in the operating profit margin.