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Earnings presentation materials3660istyle Inc.Information and Communications, Services and Others

Financial Results Presentation for the First Quarter of the Fiscal Year Ending June 2027

Revenue increased across all segments in the first quarter, but the marketing support business posted lower profit due to investments in personnel and systems aimed at future growth, and consolidated operating profit also declined. Revenue increased 6.4% year on year, while operating profit decreased 17.9%.

Worth reading
81Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-17.9
Operating income, year-on-year change (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsFirst quarter of the fiscal year ending June 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥19,623 million+6.4%
Operating profit¥853 million-17.9%
Ordinary income¥811 million-22.7%
Net income¥-1,668 million
Operating profit margin4.3 %
Selling, general and administrative expenses¥7,699 million
Results for the three months of the current quarter
Net Sales
¥19,623 million
Operating profit
¥853 million
Ordinary income
¥811 million
Profit attributable to owners of parent
¥-1,668 million
Full-year earnings forecast
Net Sales
¥90,000 million
Operating profit
¥5,000 million
Ordinary income
¥5,100 million
Profit attributable to owners of parent
¥1,400 million
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。
Net Sales21.8
Operating profit17.1
Ordinary income15.9
Net incomeTemporary loss due to the recognition of a ¥3.04 billion loss on cancellation of treasury stock acquisition rights
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress was somewhat weak due to the retail business (stores) and global business (Hong Kong flagship store) falling short of their sales targets. Other businesses are tracking in line with the plan.
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Likelihood of achieving the current fiscal year's plan / Answer First-quarter results were somewhat weak due to the Hong Kong flagship store and domestic stores, but the company aims to achieve its full-year target by maintaining strong performance in the marketing support business, improving the Hong Kong store and raising productivity.
  2. Questions Future trends in the marketing support business's operating margin / Answer Investment in upgrading the system infrastructure and security is being made ahead of schedule, but order momentum remains strong and the company expects margins to improve in the second half.
  3. Questions Current conditions at domestic stores / Answer In October, sales increased 6% year on year, including sales from new stores, bringing performance back in line with the plan. The domestic customer base is also expanding.
  4. Questions Status of the Hong Kong flagship store / Answer Customer traffic fell short of the internal plan due to restrained promotional activity. Area marketing and social media outreach by local beauty KOLs resumed in September.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit
Marketing Support
¥-149 million
Retail
¥20 million
Global
¥65 million
Other
¥-9 million
Corporate expenses and other items
¥-113 million
New initiatives
  • Upgrading the system infrastructure
  • Human Resources
  • Rebuilding the organizational structure and customer-attraction initiatives at the Hong Kong flagship store
  • Opening of the Kyoto Kawaramachi OPA store
  • Expansion and renovation of the Yurakucho store
  • Holding Tokyo Beauty Week 2026
  • Formation of the JAPAN FOOD BEAUTY ALLIANCE by 4 companies
  • Launch of the new supplement “@cosme+”
  • Experiential online-to-offline (OMO) pop-up event in Taiwan
Key KPIsA metric the company considers important as a management benchmark.
  • Number of @cosme members1,180 10,000 people
  • Monthly unique users1,500 10,000 people
  • Number of domestic stores37 Store
  • Number of products handled53,000 Products
  • Registered brands47,000 Brand
  • Number of registered products440,000 contracts
  • Number of reviews24,000,000 contracts
Segment results
Marketing Support
Net Sales
¥3,256 million
Year-on-year change in revenue11.5
Operating profit
¥823 million
Operating profit year on year-15.4
Retail
Net Sales
¥14,418 million
Year-on-year change in revenue1.8
Operating profit
¥880 million
Operating profit year on year2.3
Global
Net Sales
¥1,604 million
Year-on-year change in revenue59.7
Operating profit
¥-85 million
Operating profit year on year+¥65 million
Other
Net Sales
¥347 million
Year-on-year change in revenue-2.4
Operating profit
¥3 million
Operating profit year on year-75
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥30.4 100 million
DetailsLoss on cancellation of treasury stock acquisition rights. Already incorporated into the plan as a temporary loss factor
Number of stores and locations
Domestic company-operated stores
34 Store
As ofEnd of the first quarter of the fiscal year ending June 2027
Number of overseas stores
3 Store
As ofEnd of the first quarter of the fiscal year ending June 2027
Number of employees
Number of Employees1,976 people
NotesIncludes outsourced personnel and others. Figures show quarterly trends. Consolidated employee headcount was 1,395 as of June 2026.
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredFirst quarter of the fiscal year ending June 2027
Net Sales¥19,623 million (YoY +6.4%)
Operating profit¥853 million (YoY -17.9%)
Ordinary income¥811 million (YoY -22.7%)
Net income¥-1,668 million
Operating profit margin4.3 %
Selling, general and administrative expenses¥7,699 million
Results for the three months of the current quarterNet Sales ¥19,623 million / Operating profit ¥853 million / Ordinary income ¥811 million / Profit attributable to owners of parent ¥-1,668 million
Full-year earnings forecastNet Sales ¥90,000 million / Operating profit ¥5,000 million / Ordinary income ¥5,100 million / Profit attributable to owners of parent ¥1,400 million
Progress against full-year forecastNet Sales 21.8 / Operating profit 17.1 / Ordinary income 15.9 / Net income Temporary loss due to the recognition of a ¥3.04 billion loss on cancellation of treasury stock acquisition rights
Self-assessment against the planProgress was somewhat weak due to the retail business (stores) and global business (Hong Kong flagship store) falling short of their sales targets. Other businesses are tracking in line with the plan.
Segment resultsMarketing Support Net Sales ¥3,256 million / Year-on-year change in revenue 11.5 / Operating profit ¥823 million / Operating profit year on year -15.4 / Retail Net Sales ¥14,418 million / Year-on-year change in revenue 1.8 / Operating profit ¥880 million / Operating profit year on year 2.3 / Global Net Sales ¥1,604 million / Year-on-year change in revenue 59.7 / Operating profit ¥-85 million / Operating profit year on year +¥65 million / Other Net Sales ¥347 million / Year-on-year change in revenue -2.4 / Operating profit ¥3 million / Operating profit year on year -75
Breakdown of Factors Affecting the ChangeOperating profit Marketing Support ¥-149 million / Retail ¥20 million / Global ¥65 million / Other ¥-9 million / Corporate expenses and other items ¥-113 million
Key KPIsNumber of @cosme members 1,180 10,000 people, Monthly unique users 1,500 10,000 people, Number of domestic stores 37 Store, Number of products handled 53,000 Products, Registered brands 47,000 Brand, Number of registered products 440,000 contracts, Number of reviews 24,000,000 contracts
Number of stores and locationsDomestic company-operated stores 34 Store / Number of overseas stores 3 Store / Openings and closures during the period Not disclosed
Number of employeesNumber of Employees 1,976 people / Notes Includes outsourced personnel and others. Figures show quarterly trends. Consolidated employee headcount was 1,395 as of June 2026.
Risk amount incorporated into the outlook¥30.4 100 million
Key points of the Q&AQuestions Likelihood of achieving the current fiscal year's plan / Answer First-quarter results were somewhat weak due to the Hong Kong flagship store and domestic stores, but the company aims to achieve its full-year target by maintaining strong performance in the marketing support business, improving the Hong Kong store and raising productivity., Questions Future trends in the marketing support business's operating margin / Answer Investment in upgrading the system infrastructure and security is being made ahead of schedule, but order momentum remains strong and the company expects margins to improve in the second half., Questions Current conditions at domestic stores / Answer In October, sales increased 6% year on year, including sales from new stores, bringing performance back in line with the plan. The domestic customer base is also expanding., Questions Status of the Hong Kong flagship store / Answer Customer traffic fell short of the internal plan due to restrained promotional activity. Area marketing and social media outreach by local beauty KOLs resumed in September.
New initiativesUpgrading the system infrastructure, Human Resources, Rebuilding the organizational structure and customer-attraction initiatives at the Hong Kong flagship store, Opening of the Kyoto Kawaramachi OPA store, Expansion and renovation of the Yurakucho store, Holding Tokyo Beauty Week 2026, Formation of the JAPAN FOOD BEAUTY ALLIANCE by 4 companies, Launch of the new supplement “@cosme+”, Experiential online-to-offline (OMO) pop-up event in Taiwan
Items this document does not state (11)
Gross Profit MarginUnit price and quantity metricsAssumptions Underlying the Business OutlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition 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.

In the marketing support business, investments aimed at future growth, including expanding the range of brands handled, strengthening the workforce and upgrading the system infrastructure, were made ahead of schedule, temporarily reducing profit. The retail business was affected by fewer inbound visitors and weather conditions, while the global business was affected by customer traffic at its flagship store in Hong Kong.

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