Beauty Garage (3180): FY2025 Results Summary — Double-Digit Revenue Growth, Profit Dips on New Logistics Center Costs

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

For the fiscal year ended April 30, 2026, Beauty Garage Inc. posted record consolidated sales of 38,197 million yen (113.3% year on year), with all three business segments reaching record highs. Profit declined, however, as upfront investments tied to its growth strategy—chiefly the opening of the new Kashiwa Fulfillment Center (Kashiwa FC)—generated one-time expenses: operating profit was 1,518 million yen (95.2% year on year), ordinary profit 1,506 million yen (95.1%), and net profit attributable to owners of the parent 913 million yen (89.6%). The company expects a significant recovery in the year to April 2027, forecasting record profits.

Note on fiscal-year labeling: Beauty Garage’s fiscal year ends April 30, and the company labels the year ended April 30, 2026 as “FY2026.” Under this site’s convention, that most recent completed fiscal year is classified as FY2025; the figures, segment labels and forecast labels below follow the company’s own “FY2026″/”FY2027” labeling as shown in the materials. Note on figures: net profit and the related balance-sheet items and ratios below reflect the company’s June 25, 2026 correction notice, which corrected the June 9, 2026 presentation for errors in the recorded impairment loss and in the calculation period for long-term borrowings due within one year.

Consolidated Results (Full-Year Actual)

Sales grew at a double-digit rate for the year, exceeding 38 billion yen. Gross profit rose to 9,250 million yen (109.4% year on year), but the gross margin eased to 24.2% (from 25.1%) and SG&A expenses rose to 7,732 million yen (112.7% year on year), leaving operating, ordinary and net profit below the prior year. Management notes that the fourth quarter set record quarterly highs for operating and ordinary profit as gross margin recovered and logistics and staffing costs were brought under control.

Item (million yen)	FY2026	FY2025	Y-o-y
Sales	38,197	33,721	113.3%
Gross profit	9,250	8,455	109.4%
SG&A expenses	7,732	6,861	112.7%
Operating profit	1,518	1,594	95.2%
Ordinary profit	1,506	1,584	95.1%
Net profit attributable to owners of parent	913	1,019	89.6%

Segment Results

The Wholesale Business (81.7% of sales) grew steadily, with sales of 31,193 million yen (112.5% year on year); segment profit held roughly flat at 1,249 million yen (100.5%) despite delays in the full-scale operation of the Kashiwa FC. Cosmetics and materials drove product growth, mobile-site/app channels led sales, and demand from nail and eyelash salons expanded. The Store Design Business (10.3% of sales) reached record sales of 3,924 million yen (111.3%), but segment profit fell to 182 million yen (67.0%) on higher material costs and upfront investment in designers and new offices (Sapporo, Sendai). The Solution Business (8.1% of sales, renamed from “Other Peripheral Solutions Business” starting FY2026) grew rapidly to sales of 3,078 million yen (125.0%), with segment profit of 314 million yen (95.8%); store lease/sublease deals rose by 92 stores year on year.

Segment	Sales (FY2026)	Sales Y-o-y	Segment profit (FY2026)	Profit Y-o-y
Wholesale Business	31,193	112.5%	1,249	100.5%
Store Design Business	3,924	111.3%	182	67.0%
Solution Business	3,078	125.0%	314	95.8%

FY2027 Forecast

For the fiscal year ending April 2027, Beauty Garage forecasts record-high profits driven by top-line growth across all businesses and a lower SG&A ratio as logistics-related costs are controlled. It projects sales of 43,153 million yen (113.0% year on year), operating profit of 2,217 million yen (146.0%), ordinary profit of 2,200 million yen (146.0%), and net profit of 1,351 million yen (148.0%).

Item (million yen)	FY2027 Forecast	FY2026 Actual	Y-o-y
Sales	43,153	38,197	113.0%
Operating profit	2,217	1,518	146.0%
Ordinary profit	2,200	1,506	146.0%
Net profit	1,351	913	148.0%

Shareholder Returns

For FY2026 the company paid an interim dividend of 8.0 yen and a year-end dividend of 8.0 yen; the year-end dividend was resolved at the June 9, 2026 Board of Directors meeting, in line with the prior forecast. Against a target dividend payout ratio of 20.0%, the FY2026 payout ratio temporarily rose to 22.0% amid the decline in profit. For FY2027 the company forecasts an interim dividend of 9.0 yen and a year-end dividend of 9.0 yen. A shareholder benefit program (planned) offers eligible holders of one unit (100 shares) or more held continuously for over one year a choice of products worth 4,000 yen (tax included, at manufacturer’s suggested retail price).

Medium-Term Plan / Topics

Under the Midterm Management Plan 2025-2029, FY2026 was positioned as a year of laying the groundwork for future growth: the new Kashiwa FC logistics base was launched, and the group expanded through M&A, including Sauna Garage Co., Ltd. (now Spa Garage) and alc Co., Ltd. (now Medical Garage), entering the hot spring/sauna and cosmetic-medicine fields. The e-commerce platform for salons, Salon.EC, was adopted by 3,469 businesses. Plan targets include growing active users to 350,000 by FY2030 (209,000 in FY2026) and lifting Salon.EC GMV to 3.0 billion yen (0.438 billion yen in FY2026). On capital efficiency, ROE was 11.4% in FY2026 (against a 15% target) versus an estimated cost of equity of 7.9%, and the company targets a market capitalization of 50 billion yen. Separately, credit card payments on the Beauty Garage e-commerce site remained suspended following a possible information-leak notification received in February 2026; the company states the impact on business performance is currently minor.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.