istyle Inc. (3660): FY2025 Results Summary — Operating Profit Reaches the 4-Billion-Yen Range for the First Time; Amazon Warrants Acquired and Shareholder Returns Enhanced

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

Note: istyle Inc.’s fiscal year ends on June 30. Following this site’s convention, the fiscal year ended June 30, 2026 is classified as FY2025, while the body text and tables below keep the company’s own labels (FY2026 / FY26 = fiscal year ended June 30, 2026; FY2027 / FY27 = fiscal year ending June 30, 2027). All figures are in millions of yen unless otherwise stated.

istyle Inc., operator of the beauty platform @cosme, released its Presentation Materials for FY2026 & Business Plans for FY2027 on August 13, 2026. For the fiscal year ended June 2026, net sales rose 19.0% year on year to 81,807 million yen and operating profit rose 29.1% to 4,085 million yen, exceeding the initial forecast and reaching the 4-billion-yen range for the first time. The company said businesses in Japan, including Marketing Solution and Retail, drove performance. For FY27 it plans net sales of 90,000 million yen (+10.0%) and operating profit of 5,000 million yen (+22.4%). Alongside the results, istyle announced the acquisition of the 24th Series Warrants held by Amazon.com, Inc. to eliminate potential share dilution, a share buyback of up to 2.8 billion yen, and a dividend increase to 2 yen per share for FY27.

Consolidated Results (FY2026 Actual)

Net sales were 81,807 million yen (+19.0%), or 98.6% of the full-year forecast of 83,000 million yen; the company noted that sales fell short of targets at domestic retail stores and the Hong Kong flagship store. Gross profit was 34,585 million yen (+16.7%) and SG&A expenses were 30,500 million yen (+15.2%). Profits at each stage exceeded the initial forecast: operating profit was 4,085 million yen (+29.1%, 107.5% of the 3,800 million yen forecast), ordinary profit was 4,244 million yen (+28.2%, 111.7% of forecast) and profit attributable to owners of the parent company was 3,011 million yen (+29.4%, 113.6% of forecast).

Item (Million JPY)	FY26 Result	Full-Year Forecast	YoY	Forecast Achieved
Net sales	81,807	83,000	+19.0%	98.6%
Gross profit	34,585	–	+16.7%	–
SG&A	30,500	–	+15.2%	–
Operating profit	4,085	3,800	+29.1%	107.5%
Ordinary profit	4,244	3,800	+28.2%	111.7%
Profit attributable to owners of the parent company	3,011	2,650	+29.4%	113.6%

EBITDA (operating profit plus depreciation, amortization of goodwill, share-based compensation expenses, etc.) was 6,846 million yen, up from 5,596 million yen in FY25, which the company described as earning capacity reaching an all-time high. ROE was 15.6%; although it decreased year on year due to the conversion of convertible bonds by Amazon.com, Inc. and Mitsui & Co., Ltd., it remained above the company’s assumed cost of equity of 12-13%. The Other segment’s figures include the sale of operational investment securities, which contributed 749 million yen to net sales and 129 million yen to operating profit.

Segment Results

Marketing Solution (BtoB advertising/solution services and marketing SaaS) posted net sales of 12,083 million yen (+25.2%) and operating profit of 3,516 million yen (+24.6%), with strong performance driven by expanded businesses with brands; the company said business with brands expanded due to synergies with the Retail business and exceeded plan. Retail (domestic EC and physical stores) recorded net sales of 61,695 million yen (+15.4%) and operating profit of 3,599 million yen (+15.6%), with increased sales and profit in both EC and Stores. Stores recorded their highest-ever sales despite a slight decline in certain inbound demand, while EC saw shipping delays due to a warehouse relocation (resolved on May 18, 2026) but a 32% YoY surge in @cosme SPECIAL WEEK (based on GMV).

Global net sales rose 37.9% to 5,757 million yen, as the Hong Kong flagship store and cross-border EC in China contributed to increased sales, but the segment recorded an operating loss of 356 million yen (YoY -181 million yen) due to delayed optimization of the Hong Kong store and a revenue shortfall versus plan. Other posted net sales of 2,272 million yen (+53.5%) and operating profit of 191 million yen (+1.4%), reflecting the sale of operational investment securities. Corporate expenses (with adjustments) were -2,864 million yen (YoY -80 million yen).

Segment	Net Sales (Million JPY)	YoY	Operating Profit (Million JPY)	YoY
Marketing Solution	12,083	+25.2%	3,516	+24.6%
Retail	61,695	+15.4%	3,599	+15.6%
Global	5,757	+37.9%	-356	-181 M JPY
Other	2,272	+53.5%	191	+1.4%
Corp. Exp. (w/ Adjustments)	–	–	-2,864	-80 M JPY
Consolidated	81,807	+19.0%	4,085	+29.1%

On operating KPIs, the company said total user actions maintained a growth trajectory and @cosme membership continues to trend up. As of June 2026, @cosme had 11.6 million registered members, approximately 15 million monthly unique users and 24 million registered reviews, and the Retail business operated 36 domestic stores.

FY2027 Business Plan

For FY27, istyle plans net sales of 90,000 million yen (+10.0%), operating profit of 5,000 million yen (+22.4%) and ordinary profit of 5,100 million yen (+20.2%), continuing double-digit growth in sales and profit. Net income attributable to owners of the parent company is planned at 1,400 million yen (-53.5%), a temporary decrease due to an extraordinary loss of 3,036 million yen from the cancellation of the 24th Warrants; before reflecting this loss and the related tax reduction, net income would be 3,400 million yen (+12.9%). The company plans to open two new stores and renovate three existing stores in Retail, and expects @cosme HONG KONG to make a significant contribution to profits from H2, as launch expenses (250 million yen) were already recorded in the previous fiscal year. In Marketing Solution, profit growth is expected to be limited due to increased investment in AI and DX talent and rising security costs.

Item (Million JPY)	FY27 Plan	FY26 Result	YoY
Net sales	90,000	81,807	+10.0%
Operating profit	5,000	4,085	+22.4%
Ordinary profit	5,100	4,244	+20.2%
Net income attributable to owners of the parent company	1,400	3,011	-53.5%
(Ref.) Before extraordinary loss	3,400	3,011	+12.9%
Dividend per share	¥2	¥1	+100.0%

Segment	Metric	FY27 Plan	FY26 Result	YoY
Marketing Solution	Net sales	13,500	12,083	+11.7%
Marketing Solution	OP	3,700	3,516	+5.2%
Retail	Net sales	66,700	61,695	+8.1%
Retail	OP	4,100	3,599	+13.9%
Global	Net sales	8,000	5,757	+39.0%
Global	OP	100	-356	+456
Other	Net sales	1,800	2,272	-20.8%
Other	OP	100	191	-47.5%
Company-wide cost & others	OP	-3,000	-2,864	-136

Capital Policy and Shareholder Returns

istyle acquired the 24th Series Warrants (potential shares) held by Amazon.com, Inc. on August 13, 2026. The 436,047 warrants were equivalent to 43,604,700 shares, a potential dilution rate of approximately 42.5%, with an exercise price of 262 yen per share. The acquisition price was 3.15 billion yen (approximately 72.2 yen per share), and the warrants are scheduled to be cancelled in Q1 of FY27, eliminating potential share dilution. The company stated that external financing for the originally intended uses of funds, such as system investments, is no longer necessary thanks to operating cash flow, and that the business and capital alliance with Amazon.com, Inc., including the @cosme SHOPPING store on Amazon.co.jp, will be continued and strengthened.

The company also resolved to repurchase up to 7,500,000 of its own shares (approximately 7.5% of the 102,661,967 shares outstanding) for up to 2.8 billion yen, through market purchases on the TSE under a discretionary trading agreement between August 14, 2026 and June 30, 2027. The annual dividend per share is forecast to double from 1.00 yen for FY26 to 2.00 yen for FY27, raising the dividend payout ratio from 3.3% to 5.9% (calculated on net income of 3.4 billion yen before the extraordinary loss).

Item	FY26 (Previous FY)	FY27 Forecast (Current FY)
Dividend per share (annual)	¥1.00	¥2.00
Dividend payout ratio	3.3%	5.9%

Mid-Term Business Policy and Growth Strategy

Under the mid-term business policy formulated in FY25 for the next four to five years, istyle targets net sales of 100 billion JPY, operating profit of 8 billion JPY (8.0% operating margin), a net sales CAGR of 12-15%, and ROE exceeding the cost of equity. The company said progress is on track toward these goals, with FY27 planned at net sales of 90 billion JPY and operating profit of 5.0 billion JPY. As growth strategies, it cites updating @cosme, expanding into new areas, and establishing a beauty ecosystem, built on the integration of online and offline, experience design that leads consumers to fall in love with brands, and global expansion, including creating a new East Asian beauty ecosystem. Initiatives already underway include the Tokyo Beauty Week event, to be held again from November 18 to 24, 2026, and the partnership with Trenders, Inc., with capital policy and M&A kept as options.

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.