Contents of this document
- Cost reductionsQ1 2026 benefits¥2 billionExpected full-year benefits¥7 billion
- More efficient marketing investmentQ1 2026 benefits¥500 millionExpected full-year benefits¥1 billion
- Reduction in personnel expensesQ1 2026 benefits¥2.5 billionExpected full-year benefits¥8 billion
- Other expense reductionsQ1 2026 benefits¥2.5 billionExpected full-year benefits¥9 billion
- Total structural reform benefitsQ1 2026 benefits¥7.5 billionExpected full-year benefitsMore than ¥25.0 billion
- Decision to close the Hsinchu plant in Taiwan
- Consolidation of production at domestic plants
- Increased investment in key radiance care and other products in China and travel retail
- Focused investment in key retailers in the Americas and expanded sales of new and hero products
- Japan Q1 customer purchases−mid-single digits%
- Japan local Q1 customer purchases+low-single digits%
- Asia Pacific Q1 customer purchases+high-single digits%
- Europe Q1 customer purchases−low-single digits%
- China prestige marketContinued recovery
- JapanNet Sales¥71.2 billion, down 3.6% year on year on a like-for-like basisCore operating profit¥10.4 billion, down 8.1% year on year
- China and travel retailNet Sales¥78.3 billion, down 1.4% year on year on a like-for-like basisCore operating profit¥15.7 billion, up 18.0% year on year
- Asia PacificNet Sales¥18.0 billion, down 1.1% year on year on a like-for-like basisCore operating profit¥500 million
- AmericasNet Sales¥29.6 billion, up 5.1% year on year on a like-for-like basisCore operating profit¥300 million
- EuropeNet Sales¥32.5 billion, down 9.9% year on year on a like-for-like basisCore operating profit−¥1.6 billion
- OtherNet Sales¥2.3 billion, down 19.9% year on year on a like-for-like basisCore operating profit-¥0.7 billion
| Item | Details |
|---|---|
| Document type | Presentation materials for financial results |
| Fiscal Period Covered | Q1 2026 |
| Net Sales | 2,320 Hundreds of millions of yen |
| Operating profit | 123 Hundreds of millions of yen |
| Ordinary income | 133 Hundreds of millions of yen |
| Net income | 84 Hundreds of millions of yen |
| Gross Profit Margin | 78.4%, up 0.9 percentage points year on year |
| Operating profit margin | 5.3%; year-on-year change in percentage points: Not disclosed |
| Selling, general and administrative expenses | ¥1,707 100 million; SG&A-to-revenue ratio: 73.6% |
| Results for the three months of the current quarter | Q1 2026 standalone results: revenue of ¥232.0 billion, core operating profit of ¥13.0 billion, operating profit of ¥12.3 billion, quarterly profit before tax of ¥13.3 billion, and quarterly profit of ¥8.4 billion |
| Full-year earnings forecast | Core operating profit of ¥69.0 billion, operating profit of ¥59.0 billion, and non-recurring items of −¥10.0 billion. The full-year revenue forecast in monetary terms is Not disclosed |
| Self-assessment against the plan | The structural reform initiatives are progressing as planned |
| Segment results | Segment Japan / Net Sales ¥71.2 billion, down 3.6% year on year on a like-for-like basis / Core operating profit ¥10.4 billion, down 8.1% year on year, Segment China and travel retail / Net Sales ¥78.3 billion, down 1.4% year on year on a like-for-like basis / Core operating profit ¥15.7 billion, up 18.0% year on year, Segment Asia Pacific / Net Sales ¥18.0 billion, down 1.1% year on year on a like-for-like basis / Core operating profit ¥500 million, Segment Americas / Net Sales ¥29.6 billion, up 5.1% year on year on a like-for-like basis / Core operating profit ¥300 million, Segment Europe / Net Sales ¥32.5 billion, down 9.9% year on year on a like-for-like basis / Core operating profit −¥1.6 billion, Segment Other / Net Sales ¥2.3 billion, down 19.9% year on year on a like-for-like basis / Core operating profit -¥0.7 billion |
| Breakdown of Factors Affecting the Change | Factors Cost reductions / Q1 2026 benefits ¥2 billion / Expected full-year benefits ¥7 billion, Factors More efficient marketing investment / Q1 2026 benefits ¥500 million / Expected full-year benefits ¥1 billion, Factors Reduction in personnel expenses / Q1 2026 benefits ¥2.5 billion / Expected full-year benefits ¥8 billion, Factors Other expense reductions / Q1 2026 benefits ¥2.5 billion / Expected full-year benefits ¥9 billion, Factors Total structural reform benefits / Q1 2026 benefits ¥7.5 billion / Expected full-year benefits More than ¥25.0 billion |
| Key KPIs | Indicator name Japan Q1 customer purchases / Value −mid-single digits%, Indicator name Japan local Q1 customer purchases / Value +low-single digits%, Indicator name Asia Pacific Q1 customer purchases / Value +high-single digits%, Indicator name Europe Q1 customer purchases / Value −low-single digits%, Indicator name China prestige market / Value Continued recovery |
| Assumptions Underlying the Business Outlook | Q1 2026 actual exchange rates: US$1 = ¥156.8, €1 = ¥183.6, and CNY1 = ¥22.7 |
| Medium-term management plan targets | The 2030 medium-term management strategy targets are referenced, but specific target figures are Not disclosed |
| Market Size / Share | Quantitative market size and market share are Not disclosed |
| New initiatives | Decision to close the Hsinchu plant in Taiwan, Consolidation of production at domestic plants, Increased investment in key radiance care and other products in China and travel retail, Focused investment in key retailers in the Americas and expanded sales of new and hero products |
Items this document does not state (12)
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.Revenue declined due to shipment timing differences for certain brands and inventory optimization. On the profit side, the effects of structural reforms, primarily in the Americas, an improved brand and SKU mix, lower provisions for the write-down of excess inventory, and company-wide cost management contributed to results.