Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
10
¥100 million (operating profit shortfall versus plan)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFull-year results for the fiscal year ended March 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥293 hundred million+106.0%
Operating profit¥38 hundred million
Full-year earnings forecast
Net Sales
¥56 billion–¥60 billion
Operating profit
¥7.5 billion–¥10 billion
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue achieved the plan, while operating profit was 80% of plan and fell ¥1 billion short.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Questions Why is the full-year earnings forecast range so wide? / Answer Because operating profit in the previous fiscal year fell ¥1 billion short of plan, the lower end was set conservatively at ¥7.5 billion. The company explained that it aims to achieve ¥10 billion, with upside in wholesale sales expected to be the main driver.
- Questions What did the strategic investment in the fourth quarter involve, and what effects is it expected to have? / Answer The investment covered pilot-testing costs for using SELL in in-store wholesale sales. The investment will continue through the first quarter of the fiscal year ending March 2027, and is expected to begin contributing to profit from the second quarter onward.
- Questions What are the expected earnings and synergies following the acquisition of BJC? / Answer BJC's plan for the fiscal year ending March 2027 calls for revenue of ¥15 billion and operating profit of ¥4.36 billion. Expected synergies include expanding Brighte through a network of approximately 40,000 salons, providing EC expertise, and jointly developing products.
- Questions Will the company conduct share repurchases? / Answer Share repurchases are not a high priority at present, and the company intends to prioritize allocating funds to growth investments.
- Questions Why does the company not disclose forecast EPS? / Answer The company changed its profit metric from net income to adjusted net income, making comparison with historical EPS on the same basis impossible. It therefore withheld the disclosure to avoid confusion.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Revenue exceeding plan¥1.3 billion
- Increase in gross profit¥800 million
- Strategic investment in the fourth quarter¥1.8 billion
- Operating profit shortfall versus plan¥1 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Brand-by-brand revenue plan for the fiscal year ending March 2027Yunth ¥20 billion, Brighte ¥15 billion, Straine ¥6 billion, BJC ¥15 billion, total ¥56 billion
- Upside potential from wholesale sales¥4 billion in revenue
- Increase in profit if wholesale sales exceed planApproximately ¥2.5 billion
- BJC's earnings plan for the fiscal year ending March 2027Revenue of ¥15 billion and operating profit of ¥4.36 billion
New initiatives
- Shifting the sales channel from an EC-centered model to an in-store wholesale-centered model
- Using the proprietary AI marketing system SELL in physical stores and establishing a framework for analyzing POS and advertising operations data
- Expanding Brighte products through BJC's network of approximately 40,000 salons
- Launching new salon-exclusive products through joint product development with BJC
- Reviewing KPIs based on revenue and gross profit by brand
- Consideration of Voluntary Adoption of IFRS
Key KPIsA metric the company considers important as a management benchmark.
- In-store wholesale sales ratio (full year)34 %Year on year against the same period last yearUp from approximately 10% at the time of listing
- In-store wholesale sales ratio (fourth quarter of the fiscal year ended March 2026)More than 50%
- EC ratio of Japan's beauty products market8.8 %
- In-store ratio of Japan's beauty products market91.2 %
Medium-term management plan targets
Long-term target of a ¥1 trillion market capitalization. Target year: Not disclosed; comparison with actual results: Not disclosedMarket Size / Share
- EC ratio of Japan's beauty products market8.8 %
- In-store ratio of Japan's beauty products market91.2 %
- Number of salons handling high-priced beauty products8 10,000 stores
- Number of salons already partnered with BJC4 10,000 stores
Acquisition of treasury shares
The company determined that share repurchases are not a high priority at present. The amount, number of shares and period for the repurchase authorization are Not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Full-year results for the fiscal year ended March 2026 |
| Net Sales | ¥293 hundred million (YoY +106.0%) |
| Operating profit | ¥38 hundred million |
| Full-year earnings forecast | Net Sales ¥56 billion–¥60 billion / Operating profit ¥7.5 billion–¥10 billion |
| Self-assessment against the plan | Revenue achieved the plan, while operating profit was 80% of plan and fell ¥1 billion short. |
| Breakdown of Factors Affecting the Change | Factors Revenue exceeding plan / Amount ¥1.3 billion, Factors Increase in gross profit / Amount ¥800 million, Factors Strategic investment in the fourth quarter / Amount ¥1.8 billion, Factors Operating profit shortfall versus plan / Amount ¥1 billion |
| Key KPIs | Indicator name In-store wholesale sales ratio (full year) / Value 34 % / Year on year against the same period last year Up from approximately 10% at the time of listing, Indicator name In-store wholesale sales ratio (fourth quarter of the fiscal year ended March 2026) / Value More than 50% / Year on year against the same period last year Not disclosed, Indicator name EC ratio of Japan's beauty products market / Value 8.8 % / Year on year against the same period last year Not disclosed, Indicator name In-store ratio of Japan's beauty products market / Value 91.2 % / Year on year against the same period last year Not disclosed |
| Assumptions Underlying the Business Outlook | Item Brand-by-brand revenue plan for the fiscal year ending March 2027 / Value Yunth ¥20 billion, Brighte ¥15 billion, Straine ¥6 billion, BJC ¥15 billion, total ¥56 billion, Item Upside potential from wholesale sales / Value ¥4 billion in revenue, Item Increase in profit if wholesale sales exceed plan / Value Approximately ¥2.5 billion, Item BJC's earnings plan for the fiscal year ending March 2027 / Value Revenue of ¥15 billion and operating profit of ¥4.36 billion |
| Medium-term management plan targets | Long-term target of a ¥1 trillion market capitalization. Target year: Not disclosed; comparison with actual results: Not disclosed |
| Acquisition of treasury shares | The company determined that share repurchases are not a high priority at present. The amount, number of shares and period for the repurchase authorization are Not disclosed |
| Market Size / Share | Item EC ratio of Japan's beauty products market / Value 8.8 %, Item In-store ratio of Japan's beauty products market / Value 91.2 %, Item Number of salons handling high-priced beauty products / Value 8 10,000 stores, Item Number of salons already partnered with BJC / Value 4 10,000 stores |
| Key points of the Q&A | Questions Why is the full-year earnings forecast range so wide? / Answer Because operating profit in the previous fiscal year fell ¥1 billion short of plan, the lower end was set conservatively at ¥7.5 billion. The company explained that it aims to achieve ¥10 billion, with upside in wholesale sales expected to be the main driver., Questions What did the strategic investment in the fourth quarter involve, and what effects is it expected to have? / Answer The investment covered pilot-testing costs for using SELL in in-store wholesale sales. The investment will continue through the first quarter of the fiscal year ending March 2027, and is expected to begin contributing to profit from the second quarter onward., Questions What are the expected earnings and synergies following the acquisition of BJC? / Answer BJC's plan for the fiscal year ending March 2027 calls for revenue of ¥15 billion and operating profit of ¥4.36 billion. Expected synergies include expanding Brighte through a network of approximately 40,000 salons, providing EC expertise, and jointly developing products., Questions Will the company conduct share repurchases? / Answer Share repurchases are not a high priority at present, and the company intends to prioritize allocating funds to growth investments., Questions Why does the company not disclose forecast EPS? / Answer The company changed its profit metric from net income to adjusted net income, making comparison with historical EPS on the same basis impossible. It therefore withheld the disclosure to avoid confusion. |
| New initiatives | Shifting the sales channel from an EC-centered model to an in-store wholesale-centered model, Using the proprietary AI marketing system SELL in physical stores and establishing a framework for analyzing POS and advertising operations data, Expanding Brighte products through BJC's network of approximately 40,000 salons, Launching new salon-exclusive products through joint product development with BJC, Reviewing KPIs based on revenue and gross profit by brand, Consideration of Voluntary Adoption of IFRS |
Items this document does not state (17)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioCapital expendituresOrders received and order backlog
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The operating profit shortfall versus plan was attributable to ¥1.8 billion in strategic investment made in the fourth quarter. The investment was intended to structurally shift the sales channel from an EC-centered model to an in-store wholesale-centered model and conduct pilot testing to use the company's proprietary AI marketing system, SELL, in physical stores.
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