ARTNATURE INC. (7823): FY2025 Results Summary — Record Sales and 47.6% Operating Income Growth Alongside New Medium-Term Plan

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

Note: ARTNATURE INC. labels the fiscal year ended March 31, 2026 as “FY2026” in its own IR materials (with the prior year labeled “FY2025”); this site’s convention uses “FY2025” for the most recently completed fiscal year. To avoid confusion, all figures, table headers and segment labels below retain the company’s own FY2025/FY2026 notation exactly as shown in its presentation.

ARTNATURE INC. (7823) reported consolidated net sales of ¥44,600 million for the fiscal year ended March 31, 2026 (the company’s FY2026), up 2.9% year on year and the highest level since the company’s stock listing, together with operating income of ¥3,219 million, up 47.6% and the highest level achieved over the Medium-Term Management Plan period. Growth in the Ladies’ Business (up 5.9%) and lower cost-of-sales and SG&A expense ratios drove the profit increase, although net sales fell 6.3% short of the company’s revised plan due to difficulty winning new customers and a failure to branch into new business domains. Alongside the results, the company announced a new four-year medium-term management plan, “ARTNATURE Frontier” (FY2027-FY2030).

Consolidated Results (Full-Year Actual)

The cost of sales ratio decreased 0.6 percentage points (product cost down 0.2pt, HR down 0.4pt) and the SG&A expenses ratio decreased 1.6 percentage points (advertising spending down 1.4pt, HR up 0.2pt, other down 0.5pt), driving the improvement in profitability. Capital expenditure for the year totaled ¥2,384 million, including ¥1,205 million for store facilities, ¥118 million for systems, and ¥534 million related to the new factory. Figures below are in ¥ million.

Item	FY2025 (Results)	FY2026 (Results)	Revision Plan
Net Sales	43,340	44,600	47,623
Men’s Business	23,167	23,274	23,495
Ladies’ Business	18,646	19,749	20,869
Others	1,526	1,576	3,258
Cost of Sales	14,646	14,803	16,154
Gross Profit	28,694	29,797	31,468
SG&A Expenses	26,512	26,577	28,690
Ad Spending	6,188	5,763	6,187
HR	6,533	6,831	6,967
Operating Income	2,181	3,219	2,778
Ordinary Income	2,249	3,451	2,844
Net Income	821	1,898	1,464
Depreciation	1,117	1,254	1,503
CAPEX	2,831	2,384	2,820

Segment Results

By business segment, Men’s Business net sales rose 0.5% to ¥23,274 million, Ladies’ Business net sales rose 5.9% to ¥19,749 million (Ladies’ Business includes JULLIA OLGER and NAO-ART CO., LTD.), and Others rose 3.3% to ¥1,576 million (see the consolidated table above). On a non-consolidated product/service basis, custom-made wigs (total both segments) generated ¥22,502 million (up 1.9%), as a 5.4% decline in new-customer sales was offset by 3.5% growth in repeat business. Hair addition products grew 11.2% and JULLIA OLGER sales grew 4.5%. Figures below are in ¥ million.

Product/Service (Total Both Segments)	FY2025 (Results)	FY2026 (Results)	YoY Change	YoY %
Custom-made Wigs — New Customers	3,865	3,656	(209)	(5.4%)
Custom-made Wigs — Repeat Business	18,208	18,846	+637	+3.5%
Custom-made Wigs — Total	22,074	22,502	+428	+1.9%
Hair Addition Products — Total	3,917	4,355	+437	+11.2%
Hair Growth Services — Total	1,033	1,036	+3	+0.3%
Styling Services	7,136	7,336	+199	+2.8%
JULLIA OLGER	4,791	5,006	+215	+4.5%
Others	2,497	2,486	(11)	(0.5%)
All Products & Services — Total	41,451	42,724	+1,272	+3.1%

FY2027 Forecast

For the fiscal year ending March 31, 2027 (the company’s FY2027, positioned as a “preparation period”), ARTNATURE forecasts consolidated net sales of ¥48,494 million, up 8.7%, but lower profitability, with operating income of ¥2,500 million (down 22.3%), ordinary income of ¥2,665 million (down 22.8%), and net income of ¥1,214 million (down 36.0%), reflecting planned upfront investment to strengthen the business foundation and branch into new domains. Others segment sales are forecast to rise 179.0% as the company begins to record new-domain business. Figures below are in ¥ million.

Item	FY2026 (Results)	FY2027 (Plan)	YoY Change
Net Sales	44,600	48,494	+8.7%
Men’s Business	23,274	23,442	+0.7%
Ladies’ Business	19,749	20,654	+4.6%
Others	1,576	4,398	+179.0%
Cost of Sales	14,803	16,922	+14.3%
Gross Profit	29,797	31,572	+6.0%
SG&A Expenses	26,577	29,072	+9.4%
Operating Income	3,219	2,500	(22.3%)
Ordinary Income	3,451	2,665	(22.8%)
Net Income	1,898	1,214	(36.0%)

Shareholder Returns

ARTNATURE paid an annual dividend of ¥30 per share for FY2026, up ¥2 from FY2025’s ¥28, for a payout ratio of 51.5%. Under its dividend policy, based on a consolidated payout ratio of 40% or higher, the company will strive to increase dividends in increments of ¥1 in line with consolidated performance, with the current annual dividend of ¥28 as the minimum limit; until an ROE of over 10% is achieved, the consolidated payout ratio will be set at 50% or higher, and dividends may be adjusted if consolidated net income fluctuates significantly. Under the new medium-term plan the company has committed to an annual dividend of ¥28 or more and a payout ratio of 50% or more through FY2030. ARTNATURE also introduced a shareholder benefit program for shareholders holding 7 trading units (700 shares) or more registered as of the end of September each year, redeemable for products, food and drink items, and electronics via the “ARTNATURE Premium Benefit Club” website.

Item	FY2024	FY2025	FY2026
Dividend per Share (yen)	28	28	30
Dividend Payout Ratio	62.2%	110.9%	51.5%
ROE	5.6%	3.1%	6.9%

Medium-Term Plan

Alongside its FY2026 results, ARTNATURE announced a new medium-term management plan, “ARTNATURE Frontier” (FY2027-FY2030), positioned as the first phase of realizing its long-term vision of “Becoming a World-Leading Wig Lifestyle Solutions Provider.” The plan targets consolidated net sales of ¥59.9 billion and ROE of 9.2% in FY2030, up from FY2026 actual net sales of ¥44.6 billion and ROE of 6.9%, with the first plan year (FY2027) positioned as a preparation period in which net sales increase but profit decreases, before earnings growth resumes from FY2028 and ROE improves steadily from FY2029. The plan identifies five priority issues to address: strengthening the customer base, strengthening the production infrastructure, improving efficiency, branching out into new business domains, and strengthening human capital.

Item	FY2026 (Results)	FY2027 (Plan)	FY2028 (Plan)	FY2029 (Plan)	FY2030 (Plan)
Net Sales (billion yen)	44.6	48.4	52.1	55.9	59.9
Ordinary Income Ratio	7.7%	5.5%	6.8%	6.8%	6.7%
ROE	6.9%	4.5%	8.3%	8.9%	9.2%

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.