Lower Revenue and Profit in the Cosmetics and Health Foods Businesses Due to Lower Subscription Retention

「In the cosmetics mail-order business, revenue declined because the number of new customers acquired decreased and the rate at which new purchasers were converted to subscription plans fell. However, profit increased because the company prioritized securing profitability by refraining from inefficient advertising. In the health foods mail-order business, revenue declined but profit increased because, although improvements in the efficiency of acquiring new customers were insufficient, the retention rate for existing customers on subscription plans showed an improving trend.」

「In the cosmetics mail-order business, revenue declined due to a decrease in the number of new customers acquired and a lower rate of converting new purchasers to subscription plans. In the health foods mail-order business, although improvements in the efficiency of acquiring new customers were insufficient, revenue declined while profit increased as the retention rate for existing customers on subscription plans showed signs of improvement.」

「Sales and profit declined due in part to lower continuation rates for subscription courses among new purchasers. In the Health Foods Mail-Order Business, sales and profit also declined because, although the efficiency of new-customer acquisition improved, the company was unable to improve the conversion to subscription courses or the continuation rate among subscription-course customers. As a result, net sales were ¥13,847 million, down 5.9% year on year, and segment profit was ¥719 million, down 22.4%.」