KOSÉ (4922) Q2 2026 earnings summary

Executive summary

• Net sales for 1H 2026 rose 2.7% year-over-year to ¥164.9 billion, driven by strong growth in Asia and North America, offsetting declines in Japan and supported by the cosmetics segment.

• Operating profit fell 41.5% year-over-year to ¥6.6 billion due to higher marketing, advertising, and event expenses, especially for ALBION's 70th anniversary, and lower earnings at ALBION and KOSÉ Cosmeport.

• Profit attributable to owners of parent decreased 19.9% year-over-year to ¥5.6 billion, impacted by the absence of prior year asset sale gains.

• Comprehensive income surged 167.2% year-over-year to ¥6,257 million, reflecting improved foreign currency translation adjustments.

Financial highlights

• Gross profit increased to ¥116.4 billion, with a stable gross margin of 70.6%.

• SG&A expenses rose 7.9% year-over-year, mainly due to increased marketing, advertising, and anniversary-related spending.

• Net income per share declined from 124.36 yen to 99.84 yen year-over-year.

• Equity ratio remained strong at 72.7% as of June 30, 2026.

• Cash and cash equivalents at period end were ¥74,856 million, down from ¥90,747 million at the previous year-end.

Outlook and guidance

• Full-year 2026 net sales forecast remains at ¥350.0 billion (+6.0% YoY), with operating profit projected at ¥20.0 billion (+8.3% YoY), and profit attributable to owners of parent expected at ¥12.1 billion.

• Regional outlook revised: Japan forecast lowered due to competition, Asia and North America/others raised on strong duty-free and Tarte sales.

• Net income per share for the full year forecast at ¥213.21.

• No revisions to previously announced earnings guidance.