Worth reading
51Recurring
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
-643
¥ millions (year-on-year change in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFull fiscal year ended May 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥14,568 million-4.2%
Operating profit¥196 million-53.9%
Ordinary income¥100 million-33.3%
Net income¥214 million-33.3%
Selling, general and administrative expenses¥5,287 million
Gross Profit Margin37.6% (down 3.3 percentage points year on year)
Operating profit margin1.3% (year-on-year change in percentage points not disclosed)
Results for the three months of the current quarter
Period CoveredMarch 2026 to May 2026
Net Sales
¥3,447 million-8.4%
Gross profit
¥1,296 million-16.7%
Gross Profit Margin37.6% (down 3.8 percentage points year on year)
Selling, general and administrative expenses
¥1,299 million-12.1%
SG&A ratio37.7% (down 1.6 percentage points year on year)
Adjusted EBITDA
¥37 million
Operating profit
¥-3 million
Full-year earnings forecast
Net Sales
¥14,600 million
Operating profit
¥250 million
Ordinary income
¥240 million
Profit attributable to owners of the parent
¥160 million
Dividend per share
¥9
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan not achievedBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Inventory valuation loss associated with the contraction of the TV channel and other factors¥-75 million
- Estimated returns of Korean cosmetics¥-40 million
- Allowance for doubtful accounts associated with deteriorating performance at an unconsolidated subsidiary¥-82 million
- Impairment loss on operated stores¥-14 million
- Impairment Losses on Shares of Affiliates¥-34 million
- Adjustment to corporate income taxes related to deferred tax assets (gain)¥222 million
- Reduction in SG&A expenses, primarily advertising and promotion expenses¥-500 million approximately
New initiatives
- Launch of the Group Management Reform Council
- Establishment of the Corporate Planning Office
- Formulation of the New IKWAY2030 / Medium-Term Management Plan
- Allocation of roles between flow-type and stock-type products through the absorption merger and absorption-type company split of アイケイ and プライムダイレクト
- Acquisition and conversion into a subsidiary of the SNS advertising business "getpop"
- Domestic exclusive agency agreements for the 2 Korean cosmetics brands "PINKWONDER" and "CHASIN’ RABBITS"
Key KPIsA metric the company considers important as a management benchmark.
- Adjusted EBITDA¥337 millionYear on year against the same period last year-43.8%
- EPS (earnings per share)¥28.37
- Korean cosmetics revenue¥4,160 million
- Direct Marketing business revenue¥2,832 millionYear on year against the same period last year-29.7%
- Sales Marketing business revenue¥11,733 millionYear on year against the same period last year+5.0%
Segment results
- Direct MarketingNet Sales¥2,832 millionPrior-Period Net Sales¥4,031 millionYear-on-year change in revenue-29.7Gross profit¥1,568 millionOperating profit¥43 millionOperating profit in the previous fiscal year¥44 millionOperating profit margin1.6% (1.1% in the previous fiscal year)
- Sales MarketingNet Sales¥11,733 millionPrior-Period Net Sales¥11,177 millionYear-on-year change in revenue5Gross profit¥3,914 millionOperating profit¥857 millionOperating profit in the previous fiscal year¥1,030 millionYear-on-year operating profit growth-16.8Operating profit margin7.3% (9.2% in the previous fiscal year)
Medium-term management plan targets
The Company plans to review the current medium-term plan and formulate a new "New IKWAY2030 / Medium-Term Management Plan." Specific target figures and target fiscal year: Not disclosed.Number of employees
177 People as of the end of May 2026, consolidated
Annual Dividend
¥9 per share
Payout ratio
42.5 %
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Full fiscal year ended May 2026 |
| Net Sales | ¥14,568 million (YoY -4.2%) |
| Operating profit | ¥196 million (YoY -53.9%) |
| Ordinary income | ¥100 million (YoY -33.3%) |
| Net income | ¥214 million (YoY -33.3%) |
| Gross Profit Margin | 37.6% (down 3.3 percentage points year on year) |
| Operating profit margin | 1.3% (year-on-year change in percentage points not disclosed) |
| Selling, general and administrative expenses | ¥5,287 million |
| Results for the three months of the current quarter | Period Covered March 2026 to May 2026 / Net Sales ¥3,447 million (YoY -8.4%) / Gross profit ¥1,296 million (YoY -16.7%) / Gross Profit Margin 37.6% (down 3.8 percentage points year on year) / Selling, general and administrative expenses ¥1,299 million (YoY -12.1%) / SG&A ratio 37.7% (down 1.6 percentage points year on year) / Adjusted EBITDA ¥37 million / Operating profit ¥-3 million |
| Full-year earnings forecast | Net Sales ¥14,600 million / Operating profit ¥250 million / Ordinary income ¥240 million / Profit attributable to owners of the parent ¥160 million / Dividend per share ¥9 |
| Self-assessment against the plan | Plan not achieved |
| Segment results | Segment Direct Marketing / Net Sales ¥2,832 million / Prior-Period Net Sales ¥4,031 million / Year-on-year change in revenue -29.7 / Gross profit ¥1,568 million / Operating profit ¥43 million / Operating profit in the previous fiscal year ¥44 million / Operating profit margin 1.6% (1.1% in the previous fiscal year), Segment Sales Marketing / Net Sales ¥11,733 million / Prior-Period Net Sales ¥11,177 million / Year-on-year change in revenue 5 / Gross profit ¥3,914 million / Operating profit ¥857 million / Operating profit in the previous fiscal year ¥1,030 million / Year-on-year operating profit growth -16.8 / Operating profit margin 7.3% (9.2% in the previous fiscal year) |
| Breakdown of Factors Affecting the Change | Factors Inventory valuation loss associated with the contraction of the TV channel and other factors / Amount ¥-75 million, Factors Estimated returns of Korean cosmetics / Amount ¥-40 million, Factors Allowance for doubtful accounts associated with deteriorating performance at an unconsolidated subsidiary / Amount ¥-82 million, Factors Impairment loss on operated stores / Amount ¥-14 million, Factors Impairment Losses on Shares of Affiliates / Amount ¥-34 million, Factors Adjustment to corporate income taxes related to deferred tax assets (gain) / Amount ¥222 million, Factors Reduction in SG&A expenses, primarily advertising and promotion expenses / Amount ¥-500 million (approximately) |
| Key KPIs | Indicator name Adjusted EBITDA / Value ¥337 million / Year on year against the same period last year ¥-43.8 million, Indicator name EPS (earnings per share) / Value ¥28.37, Indicator name Korean cosmetics revenue / Value ¥4,160 million, Indicator name Direct Marketing business revenue / Value ¥2,832 million / Year on year against the same period last year ¥-29.7 million, Indicator name Sales Marketing business revenue / Value ¥11,733 million / Year on year against the same period last year ¥5 million |
| Number of employees | 177 People (as of the end of May 2026, consolidated) |
| Medium-term management plan targets | The Company plans to review the current medium-term plan and formulate a new "New IKWAY2030 / Medium-Term Management Plan." Specific target figures and target fiscal year: Not disclosed. |
| Annual Dividend | ¥9 per share |
| Payout ratio | 42.5 % |
| New initiatives | Launch of the Group Management Reform Council, Establishment of the Corporate Planning Office, Formulation of the New IKWAY2030 / Medium-Term Management Plan, Allocation of roles between flow-type and stock-type products through the absorption merger and absorption-type company split of アイケイ and プライムダイレクト, Acquisition and conversion into a subsidiary of the SNS advertising business "getpop", Domestic exclusive agency agreements for the 2 Korean cosmetics brands "PINKWONDER" and "CHASIN’ RABBITS" |
Items this document does not state (11)
Progress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
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 Company cited its inability to fully offset the contraction of the TV channel and Korean cosmetics stores through the e-commerce channel; an inventory valuation loss of ¥75 million related to the contraction of the TV channel; an estimated ¥40 million in returns in preparation for expected changes to or termination of contracts for Korean cosmetics; and an allowance for doubtful accounts of ¥82 million associated with deteriorating performance at an unconsolidated subsidiary. It also explained that the main reasons for falling short of the medium-term plan were dependence on other companies' brands, weak in-house product development capabilities, the absence of medium- to long-term marketing, and a lack of focus and prioritization.
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