Pressure on beauty business profit from the rising labor cost ratio
First written in FY2017-Q3. 3 of 7 entries say "Worsened", first in FY2024-Q1. Latest entry: FY2025.
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- FY2025MitigatedAnnual report
「As a result of reducing fixed costs through the closure of unprofitable stores and improving on-site operations to raise productivity per employee, segment profit increased 310.6% year on year to ¥25 million.」
In the beauty business, fixed-cost reductions from store closures and productivity improvements raised segment profit from ¥6 million in the previous fiscal year to ¥25 million, mitigating the impact of profit pressure from labor and other costs. - FY2024-Q3WorsenedAnnual report
「In the beauty business, average customer spending increased following the introduction of a stylist-selection system and menu recommendations. However, revenue was ¥1,470 million, down 2.0% year on year, due in part to the closure of 7 unprofitable stores in the previous fiscal year. In terms of earnings, the company reduced advertising expenses by reviewing its advertising media and took other measures, but the decline in revenue, together with higher labor and other costs from stronger employee recruitment and training, resulted in segment profit of ¥17 million, down 40.0% year on year.」
Although advertising expenses were reduced, higher labor and other costs from stronger recruitment and training resulted in a 40.0% year-on-year decline in beauty business segment profit. - FY2024-Q2WorsenedAnnual report
「In terms of earnings, higher labor and other costs resulting from stronger graduate recruitment contributed to segment profit of ¥1 million, down 88.6% year on year.」
Higher labor and other costs from stronger graduate recruitment pressured beauty business profit, resulting in an 88.6% year-on-year decline in segment profit. - FY2024-Q1WorsenedAnnual report
「In terms of earnings, the company ended the intermittent shortened-hour operations implemented in response to COVID-19 conditions and normalized operating hours. In addition, higher labor costs from strengthening graduate recruitment resulted in a segment loss of ¥1 million, compared with segment profit of ¥15 million in the same period of the previous year.」
Operating hours were normalized, but higher labor costs from stronger graduate recruitment resulted in the beauty business shifting from profit of ¥15 million in the same period of the previous year to a loss of ¥1 million. - FY2023-Q3MitigatedAnnual report
「In terms of earnings, segment profit improved to ¥29 million, compared with a segment loss of ¥27 million in the same period of the previous year, as a result of improving profitability through the closure of unprofitable stores, raising productivity by deploying an appropriate level of staff and reviewing certain expenses.」
Productivity improvements through appropriate staffing and expense reviews improved beauty business profit from a loss in the same period of the previous year to profit of ¥29 million. - FY2017MaterialisedAnnual report
「Staffing levels were maintained to a certain extent, but the higher labor-cost ratio resulted in segment profit of ¥35 million, down 27.3% year on year.」
The higher labor-cost ratio associated with maintaining staffing levels emerged as a factor behind the 27.3% year-on-year decline in beauty business profit. - FY2017-Q3First statedAnnual report
「Revenue was ¥1,657 million, down 7.4% year on year, due to the impact of store closures. However, staffing levels were maintained to a certain extent, and the higher labor-cost ratio resulted in segment profit of ¥19 million, down 57.3% year on year.」
The labor-cost ratio increased while staffing levels were maintained, resulting in a 57.3% year-on-year decline in segment profit in the beauty business. This was identified for the first time as an internal factor pressuring profitability.