Beauty Garage sees revenue climb, but profits fall amid strategic investments

Beauty Garage reported robust revenue growth for the first quarter of the fiscal year ending April 2026, with consolidated net sales increasing by 14.3% year-over-year to 9,012 million yen. This growth was fueled by strong contributions from its Product Sales, Store Design, and Solutions businesses. However, operating profit declined by 23.9% to 239 million yen, ordinary profit by 22.3% to 242 million yen, and profit attributable to owners of parent by 33.3% to 162 million yen. The decline in profitability is primarily attributed to increased selling, general, and administrative expenses, including temporary logistics-related costs due to the partial activation of a new logistics hub in Kashiwa.

The company's asset structure reflects these strategic investments, with total assets rising to 16,393 million yen as of July 31, 2025. Fixed assets increased by 54.0% to 4,874 million yen, largely due to the recognition of equipment for the new logistics hub, while current assets decreased by 12.0% to 11,519 million yen, mainly due to a reduction in cash and deposits. Net assets saw a modest increase of 0.9% to 7,934 million yen.

Beauty Garage maintains its full-year consolidated earnings forecast for the fiscal year ending April 2026, projecting net sales of 38,080 million yen, operating profit of 1,841 million yen, ordinary profit of 1,830 million yen, and profit attributable to owners of parent of 1,291 million yen. The company is actively working to optimize its operational efficiency, with the full-scale activation of the automated Kashiwa FC expected to reduce selling, general, and administrative expenses in the second half of the year.