KOSÉ (4922) investor relations material

Executive summary

• Net sales for 1Q 2026 were ¥78,265 million, down 0.9% year-over-year, mainly due to lower ALBION and KOSÉ Cosmeport sales, partially offset by growth at Tarte and KOSÉ.

• Operating profit dropped 84.5% to ¥1,030 million, impacted by lower earnings at ALBION, KOSÉ Cosmeport, and Tarte, and the absence of prior-year asset sale gains.

• Profit attributable to owners of parent fell 91.9% to ¥426 million, reflecting the absence of prior-year gains from asset sales and higher promotional expenses.

• Overseas sales accounted for 38.5% of total sales, with strong growth in Asia and North America offsetting declines in Japan.

• Comprehensive income declined 80.3% to ¥495 million.

Financial highlights

• Gross profit decreased to ¥54,609 million, with gross margin falling to 69.8%.

• Net income per share dropped from ¥92.75 to ¥7.48 year-over-year.

• SG&A expenses rose 7.3% to ¥53.5 billion, with notable increases in advertising and marketing costs.

• Cost of sales ratio increased from 28.3% to 30.2%.

• Operating profit margin fell to 1.3% from 8.4% in 1Q 2025.

Outlook and guidance

• FY2026 sales are forecast to rise 6.0% to ¥350,000 million, with operating profit planned at ¥21,000 million (+2.2% YoY), and profit attributable to owners of parent at ¥12,100 million (+19.9%).

• Net income per share is projected at ¥212.67 for FY2026.

• Growth expected across core companies in Japan, Tarte, and PURI, despite anticipated cost increases.

• No revisions to previously announced guidance.