Expansion of the Nail Business in Asian Markets and Development of New Customers

「In Japan, sales of our core gel nail products declined against a backdrop of increasing commoditization and intensified competition from other companies, resulting in lower sales year on year. Overseas, sales in the U.S. market also declined year on year amid competition from low-priced gel nail products.」

「Revenue from the nail-related business was ¥2,225 million, down ¥18 million (0.8%) year on year, while operating loss was ¥113 million, a ¥46 million year-on-year decline in profit.」

「In Japan, sales of both core gel nail products and acrylic products declined as commoditization progressed and new brands from other companies proliferated. In addition, growth in sales of the nail and hand care product ARTiS di Voce, a focus product, was insufficient to offset declines in existing brands, resulting in lower revenue year on year. Overseas, although we focused on developing new customers, revenue declined year on year in the United States and Taiwan due to aggressive sales of low-priced gel nail products and the aftereffects of tighter European regulations on key raw materials.」

「As a result, revenue from the nail-related business was ¥2,243 million, down ¥130 million (5.5%) year on year. Operating loss was ¥66 million, a ¥71 million year-on-year decline in profit.」

「In Japan, we began selling nail care products that have been performing well in Taiwan, contributing to sales, but sales of core gel nail products declined, resulting in lower revenue year on year. Overseas, consumption in the United States continued to decline due to inflation, and sales of gel nail products in Taiwan also struggled, resulting in lower revenue year on year.」

「We began selling in Japan nail care products that have been performing well in Taiwan, contributing to sales.」

「We will work to raise awareness by expanding sales channels, adopting sales strategies targeting younger customers, and conducting promotional activities through social media and other channels.」

「In Japan, the domestic professional market centered on trade shows was gradually returning to pre-pandemic conditions, and growth in sales of core gel nail products resulted in higher revenue year on year. Overseas, consumption in the United States continued to decline due to inflation, resulting in lower revenue year on year. In Taiwan, sales to consumers remained strong, resulting in higher revenue year on year. As a result, revenue for the nine months ended ... was ¥1,795 million, up ¥75 million (4.4%) year on year. However, a higher cost-of-sales ratio and increased selling, general and administrative expenses reduced operating profit to ¥11 million, down ¥45 million (79.2%) year on year.」

「In Japan, the domestic professional market centered on trade shows was gradually returning to pre-pandemic conditions, and growth in sales of core gel nail products resulted in higher revenue year on year. Overseas, consumption in the United States continued to decline due to inflation, resulting in lower revenue year on year. In Taiwan, sales to consumers remained strong, resulting in higher revenue year on year.」

「Overseas, consumption in the United States continued to decline due to inflation, resulting in lower revenue year on year. In Taiwan, however, sales to consumers remained strong, resulting in higher revenue year on year.」

「In this environment, we will focus on acquiring new users by enhancing our online retail sites, while seeking to raise awareness and increase penetration of the Nail Labo brand through the Harajuku shop, where customers can experience Nail Labo products, and by disseminating information through social media.」

「In Japan, consumer gel nail products performed poorly amid aggressive competition from other companies, but sales of acrylic materials increased as the market began to recover, resulting in higher revenue for Japan overall. Overseas, consumption declined in the United States due to sharply rising inflation, but the impact of currency movements resulted in higher revenue year on year. Taiwan emerged from the impact of the rapid spread of infections and demand recovered, resulting in higher revenue year on year. As a result, revenue for the nine months ended ... was ¥1,719 million, up ¥130 million (8.2%) year on year. However, higher selling, general and administrative expenses reduced operating profit to ¥57 million, down ¥46 million (44.6%) year on year.」

「In Japan, sales of acrylic materials increased as the market began to recover, but consumer gel nail products performed poorly amid aggressive competition from other companies, resulting in lower revenue for Japan overall. Overseas, consumption declined in the United States due to sharply rising inflation, but the impact of currency movements resulted in higher revenue year on year. Taiwan emerged from the impact of the rapid spread of infections and demand recovered, resulting in higher revenue year on year. As a result, revenue for the six months ended ... was ¥1,136 million, up ¥77 million (7.3%) year on year. However, higher selling, general and administrative expenses reduced operating profit to ¥34 million, down ¥32 million (48.6%) year on year.」

「In Japan, sales of acrylic materials increased as the market began to recover, but consumer gel nail products performed poorly amid aggressive competition from other companies, resulting in lower revenue for Japan overall. Overseas, consumption declined in the United States due to sharply rising inflation, but the impact of currency movements resulted in higher revenue year on year. Taiwan was also emerging from the impact of the rapid spread of infections, resulting in higher revenue year on year. As a result, revenue for the three months ended ... was ¥552 million, up ¥24 million (4.6%) year on year. However, higher selling, general and administrative expenses reduced operating profit to ¥13 million, down ¥23 million (64.2%) year on year.」

「As the nail market enters a mature phase and user needs become more diverse, competition among companies in product development and sales is expected to intensify further.」

「In Japan, sales of core gel nail-related products declined due to the impact of restrictions on activities accompanying the resurgence of infections and the easing of stay-at-home demand, resulting in lower revenue year on year. Overseas, active social media promotions drove strong web sales in the United States, resulting in higher revenue year on year, but sales in Taiwan declined due to the rapid spread of infections. As a result, revenue for the nine months ended ... was ¥1,588 million, down ¥97 million (5.8%) year on year, while operating profit was ¥103 million, down ¥56 million (35.4%) year on year.」

「In Japan, sales of core gel nail-related products declined due to the impact of restrictions on activities accompanying the resurgence of infections and the easing of stay-at-home demand, resulting in lower revenue year on year. Overseas, active social media promotions drove strong web sales in the United States, but sales in Taiwan declined due to the rapid spread of infections, resulting in lower revenue year on year. As a result, revenue for the six months ended ... was ¥1,058 million, down ¥77 million (6.9%) year on year, while operating profit was ¥67 million, down ¥40 million (37.6%) year on year.」

「In Japan, the business was recovering from the impact of COVID-19, and products for professional nail technicians performed well. However, sales of the at-home gel nail product by Nail Labo declined as stay-at-home demand subsided, resulting in lower revenue year on year. Overseas, active social media promotions drove strong web sales in the United States, resulting in higher revenue year on year. As a result, revenue for the three months ended ... was ¥528 million, up ¥10 million (2.1%) year on year. However, higher selling, general and administrative expenses reduced operating profit to ¥36 million, down ¥5 million (13.1%) year on year.」

「In Japan, sales of the gel nail product ageha, developed in collaboration with a well-known nail technician, and the at-home product by Nail Labo remained firm. However, sales declined due to temporary nail salon closures and the cancellation of major trade shows, resulting in lower revenue year on year. Overseas, social media promotions in the United States were effective, driving growth mainly in web sales, while increased awareness of the core gel nail products in Taiwan also boosted sales, resulting in higher revenue year on year. As a result, revenue from the nail-related business was ¥2,268 million, down ¥86 million (3.7%) year on year. However, lower selling, general and administrative expenses brought operating profit to ¥201 million, up ¥94 million (87.9%) year on year.」

「As a result, revenue for the nine months ended ... was ¥1,686 million, down ¥65 million (3.8%) year on year. However, reductions in selling, general and administrative expenses brought operating profit to ¥160 million, up ¥89 million (126.8%) year on year.」

「In Japan, sales of the at-home gel nail product by Nail Labo increased amid the impact of COVID-19, but temporary nail salon closures and the cancellation of major trade shows caused products for professional nail technicians to perform poorly, resulting in lower revenue year on year. Overseas, active social media promotions drove strong web sales in the United States, while the core gel nail product L・E・D Gel Presto also drove sales in Taiwan, resulting in higher revenue year on year. As a result, revenue for the six months ended ... was ¥1,136 million, down ¥73 million (6.1%) year on year. However, reductions in selling, general and administrative expenses brought operating profit to ¥108 million, up ¥30 million (40.1%) year on year.」

「In Japan, sales of the at-home gel nail product by Nail Labo increased amid the impact of COVID-19, but products for professional nail technicians performed poorly because major trade shows were canceled, resulting in lower revenue year on year. Overseas, active social media promotions drove strong web sales in the United States, while the core gel nail product L・E・D Gel Presto also drove sales in Taiwan, resulting in higher revenue year on year. As a result, revenue for the three months ended ... was ¥517 million, down ¥77 million (13.1%) year on year. However, reductions in selling, general and administrative expenses brought operating profit to ¥42 million, up ¥24 million (142.9%) year on year.」

「In Japan, gel nail products such as L・E・D GEL Presto and ageha steadily increased sales, resulting in higher revenue year on year. Overseas, business remained firm in the United States due to active promotional activities, resulting in higher revenue year on year, but intensifying competition in Taiwan led to lower revenue. As a result, revenue for the nine months ended ... was ¥1,752 million, down ¥24 million (1.4%) year on year. However, reductions in selling, general and administrative expenses brought operating profit to ¥70 million, a return to profitability and a ¥103 million year-on-year increase in profit.」

「In Japan, gel nail products such as L・E・D GEL Presto and ageha steadily increased sales, resulting in higher revenue year on year. Overseas, business remained firm in the United States due to active promotional activities, resulting in higher revenue year on year, but intensifying competition in Taiwan led to lower revenue. As a result, revenue for the six months ended ... was ¥1,209 million, up ¥11 million (1.0%) year on year. Operating profit was ¥77 million, returning to profitability and increasing ¥106 million year on year.」

「In Japan, gel nail products such as L・E・D GEL Presto and ageha steadily increased sales, resulting in higher revenue year on year. Overseas, business remained firm in the United States due to active promotional activities, but intensifying competition in Taiwan resulted in lower revenue year on year. As a result, revenue for the three months ended ... was ¥595 million, up ¥22 million (4.0%) year on year. Operating profit was ¥17 million, returning to profitability and increasing ¥40 million year on year.」

「As a result, revenue from the nail-related business was ¥2,372 million, down ¥113 million (4.6%) year on year. Despite efforts to reduce expenses, operating loss was ¥5 million, a ¥69 million year-on-year decline in profit.」

「In Japan, gel nail products, including the core L・E・D GEL Presto brand, the consumer brand by Nail Labo, and the new ageha brand launched in the previous fiscal year, drove sales, resulting in higher revenue year on year. Overseas, business remained firm in the United States, but intensifying competition in Taiwan led to lower revenue year on year. As a result, revenue for the nine months ended ... was ¥1,776 million, down ¥44 million (2.5%) year on year. Profitability was affected by higher promotional expenses, resulting in an operating loss of ¥32 million, a ¥54 million year-on-year decline in profit.」

「In Japan, gel nail products, including the core L・E・D GEL Presto brand, the consumer brand by Nail Labo, and the new ageha brand launched in the previous fiscal year, drove sales, resulting in higher revenue year on year. Overseas, business remained firm in the United States, but intensified competition in Taiwan led to lower revenue year on year. As a result, revenue for the six months ended ... was ¥1,198 million, down ¥12 million (1.0%) year on year. Profitability was also affected by higher promotional expenses, resulting in an operating loss of ¥29 million, a ¥43 million year-on-year decline in profit.」

「In Japan, gel nail products, including the core “L・E・D GEL Presto” brand, the brand for general consumers “by Nail Labo,” and the new brand “ageha” launched in the previous fiscal year, drove sales, resulting in higher revenue year on year. Overseas, sales remained steady in the United States, but revenue declined year on year in Taiwan as competition intensified. As a result, revenue for the cumulative first quarter of the current fiscal year was ¥572 million, an increase of ¥34 million, or 6.3%, year on year. However, operating performance remained in the red as higher costs associated with promotional activities led to an operating loss of ¥22 million, a year-on-year deterioration of ¥8 million.」

「As a result, revenue in the nail-related business was ¥2,485 million, an increase of ¥541 million, or 27.8%, year on year, while operating profit was ¥63 million, returning to profitability and improving by ¥88 million year on year.」

「During the cumulative third quarter of the current fiscal year, the new gel nail brand “ageha,” launched during the period, contributed to sales. Domestic sales remained strong and increased year on year, with sales at the industry-leading Tokyo Nail Expo 2017 reaching a record high. Overseas, sales of “L・E・D GEL Presto” remained steady in the United States and Taiwan.」

「During the cumulative second quarter of the current fiscal year, the new gel nail brand “ageha,” launched during the period, drove sales, while the gel nail system for general consumers, “by Nail Labo,” performed well, resulting in higher domestic revenue year on year. Overseas, proactive sales activities paid off, and sales of the LED gel “Presto” performed well in the United States and Taiwan. As a result, revenue for the cumulative second quarter of the current fiscal year was ¥1,210 million, an increase of ¥296 million, or 32.5%, year on year. Operating profit was ¥13 million, returning to profitability and improving by ¥39 million year on year.」

「During the cumulative first quarter of the current fiscal year, the company launched “ageha,” a new gel nail brand jointly developed with a prominent nail artist to cultivate new markets. In addition, the gel nail system for general consumers, “by Nail Labo,” contributed to sales, resulting in higher domestic revenue year on year. Overseas, proactive sales activities paid off, and sales of the LED gel “Presto” performed well in the United States and Taiwan. As a result, revenue for the cumulative first quarter of the current fiscal year was ¥538 million, an increase of ¥110 million, or 25.7%, year on year. Although the company did not return to profitability because of higher selling, general and administrative expenses, its operating loss narrowed to ¥14 million, an improvement of ¥7 million year on year.」

「Overseas, proactive sales activities paid off, and sales of the LED gel “Presto” performed well in the United States and Taiwan.」

「Overseas, sales of the LED gel “Presto” performed well in the United States and Taiwan.」

「Overseas, sales of the LED gel “Presto” performed well in the United States and Taiwan.」

「The company will strengthen its sales activities in the Asian markets, where growth is expected to continue, and pursue further sales expansion by developing new customers in Japan and overseas.」