Worth reading
53Recurring
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
7.2
Year-on-year revenue growth (company-wide, excluding NE Co.)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending April 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesUp 7.2% year on year (excluding NE Co.)+7.2%
Operating profitSmall operating loss
Results for the three months of the current quarterRevenue increased 7.2% year on year, excluding NE Co. Revenue in the Beauty business increased 51.0% year on year, while revenue in the Gaming Accessories business decreased 15.2%. Other absolute figures were not disclosed.
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。Revenue progress was described as approximately 20%. Progress rates for other line items were not disclosed.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress was broadly in line with the plan and broadly in line with expectationsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Underlying improvement in the operating loss excluding temporary factors
- Basis for maintaining the full-year forecast and building profit in the second half
- Assessment of the decline in inventory turnover and increase in inventories
- Progress against the Mobile Life business plan and the impact of the new iPhone
- Revenue growth, return to profitability and advertising investment in the Beauty business
- Price competition in the Gaming Accessories business and the shift toward peripheral categories
- Factors behind the decline in revenue in the Global business and the tariff burden
- ¥3 dividend forecast and policy of maintaining a payout ratio of at least 20%
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Partial refund of US import tariffsImpactLower cost of sales. The impact was large enough to account for more than half of the improvement, but the amount was not disclosed
- Higher revenueImpactUp 7.2% year on year (excluding NE Co.)
- The Beauty business turned profitable from a lossImpactProfit Improvement
- Expansion of stores carrying base makeup productsImpactRevenue growth in the Beauty business
- Expansion of peripheral accessories, including monitor arms and furnitureImpactUnits of monitor arms sold increased 30% year on year, while revenue from peripheral accessories was 2.5 times higher
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The explanation was based on seasonality weighted toward the second half, products for new smartphones, new products launched in autumn, Black Friday and the year-end shopping season, and demand from people starting a new life. Numerical assumptions were not disclosed.New initiatives
- Consolidation of products under the iFace brand and expansion of higher-priced products, including MagSafe-compatible products
- Expansion of powered categories, including chargers and portable fans
- Launch of new ByUR products in autumn
- Addition of new ByGLOW products and investment in brand awareness, including television commercials
- Stronger development and sales of peripheral accessories, including monitor arms, furniture and cables
- Announcement of new products at the Tokyo Game Show and rollout of monitors in new colors through mass retailers
Key KPIsA metric the company considers important as a management benchmark.
- Inventory turnover1.38 timesYear on year against the same period last yearDown from 1.84x in the same period of the previous year
- Monitor arms sold30% increase year on yearYear on year against the same period last year+30.0%
- Revenue from peripheral accessories2.5 times the previous yearYear on year against the same period last year+150.0%
- Beauty business revenueUp 51.0% year on yearYear on year against the same period last year+51.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average selling prices in the Mobile Life business improved from the same period of the previous year. Units of monitor arms sold increased 30% year on year.Segment results
- Mobile Life BusinessYear on year against the same period last yearAverage selling prices improved from the same period of the previous year
- Beauty BusinessSalesRevenue up 51.0% year on yearProfitTurned profitable from a loss in the same period of the previous yearYear on year against the same period last yearRevenue Growth and Return to Profitability
- Gaming Accessories BusinessSalesRevenue down 15.2% year on yearProfitRelatively solid, but includes a temporary decrease in cost of salesYear on year against the same period last yearDecline in Revenue
- GlobalSalesRevenue down 12.6% year on yearProfitImprovedYear on year against the same period last yearLower revenue and improved profit and loss
Medium-term management plan targets
Inventory turnover of 2.94x. The company maintains a payout ratio of at least 20%. Actual inventory turnover was 1.38x, below 1.84x in the same period of the previous year.Number of stores and locations
The company referred to an increase in the number of stores carrying its products, but did not disclose the number of stores at the end of the period or the number of store openings and closures.Annual Dividend
¥3 per share. The interim and year-end breakdown was not disclosed.Payout ratio
20% or higher| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending April 2027 |
| Net Sales | Up 7.2% year on year (excluding NE Co.) (YoY +7.2%) |
| Operating profit | Small operating loss |
| Results for the three months of the current quarter | Revenue increased 7.2% year on year, excluding NE Co. Revenue in the Beauty business increased 51.0% year on year, while revenue in the Gaming Accessories business decreased 15.2%. Other absolute figures were not disclosed. |
| Progress against full-year forecast | Revenue progress was described as approximately 20%. Progress rates for other line items were not disclosed. |
| Self-assessment against the plan | Progress was broadly in line with the plan and broadly in line with expectations |
| Segment results | Segment Mobile Life Business / Sales Not disclosed / Profit Not disclosed / Year on year against the same period last year Average selling prices improved from the same period of the previous year, Segment Beauty Business / Sales Revenue up 51.0% year on year / Profit Turned profitable from a loss in the same period of the previous year / Year on year against the same period last year Revenue Growth and Return to Profitability, Segment Gaming Accessories Business / Sales Revenue down 15.2% year on year / Profit Relatively solid, but includes a temporary decrease in cost of sales / Year on year against the same period last year Decline in Revenue, Segment Global / Sales Revenue down 12.6% year on year / Profit Improved / Year on year against the same period last year Lower revenue and improved profit and loss |
| Breakdown of Factors Affecting the Change | Factors Partial refund of US import tariffs / Impact Lower cost of sales. The impact was large enough to account for more than half of the improvement, but the amount was not disclosed, Factors Higher revenue / Impact Up 7.2% year on year (excluding NE Co.), Factors The Beauty business turned profitable from a loss / Impact Profit Improvement, Factors Expansion of stores carrying base makeup products / Impact Revenue growth in the Beauty business, Factors Expansion of peripheral accessories, including monitor arms and furniture / Impact Units of monitor arms sold increased 30% year on year, while revenue from peripheral accessories was 2.5 times higher |
| Key KPIs | Indicator Inventory turnover / Value 1.38 times / Year on year against the same period last year Down from 1.84x in the same period of the previous year, Indicator Monitor arms sold / Value 30% increase year on year / Year on year against the same period last year 30 %, Indicator Revenue from peripheral accessories / Value 2.5 times the previous year / Year on year against the same period last year 150 x, Indicator Beauty business revenue / Value Up 51.0% year on year / Year on year against the same period last year 51 % |
| Unit price and quantity metrics | Average selling prices in the Mobile Life business improved from the same period of the previous year. Units of monitor arms sold increased 30% year on year. |
| Number of stores and locations | The company referred to an increase in the number of stores carrying its products, but did not disclose the number of stores at the end of the period or the number of store openings and closures. |
| Assumptions Underlying the Business Outlook | The explanation was based on seasonality weighted toward the second half, products for new smartphones, new products launched in autumn, Black Friday and the year-end shopping season, and demand from people starting a new life. Numerical assumptions were not disclosed. |
| Medium-term management plan targets | Inventory turnover of 2.94x. The company maintains a payout ratio of at least 20%. Actual inventory turnover was 1.38x, below 1.84x in the same period of the previous year. |
| Annual Dividend | ¥3 per share. The interim and year-end breakdown was not disclosed. |
| Payout ratio | 20% or higher |
| Key points of the Q&A | Underlying improvement in the operating loss excluding temporary factors, Basis for maintaining the full-year forecast and building profit in the second half, Assessment of the decline in inventory turnover and increase in inventories, Progress against the Mobile Life business plan and the impact of the new iPhone, Revenue growth, return to profitability and advertising investment in the Beauty business, Price competition in the Gaming Accessories business and the shift toward peripheral categories, Factors behind the decline in revenue in the Global business and the tariff burden, ¥3 dividend forecast and policy of maintaining a payout ratio of at least 20% |
| New initiatives | Consolidation of products under the iFace brand and expansion of higher-priced products, including MagSafe-compatible products, Expansion of powered categories, including chargers and portable fans, Launch of new ByUR products in autumn, Addition of new ByGLOW products and investment in brand awareness, including television commercials, Stronger development and sales of peripheral accessories, including monitor arms, furniture and cables, Announcement of new products at the Tokyo Game Show and rollout of monitors in new colors through mass retailers |
Items this document does not state (13)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastNumber of employeesRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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.Although expenses precede revenue in the first quarter because of the seasonality weighted toward the second half, the company maintained its full-year forecast because it plans to build profit during the busy season in the second half, including demand for products for new smartphones, new products launched in autumn, Black Friday, the year-end shopping season and demand from people starting a new life. The improvement in results also includes temporary factors such as refunds of US tariffs.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.