LIPPS CO.,LTD
373A・Growth Market・Chemicals
LIPPS CO.,LTD
373A・Growth Market・Chemicals
Products Business
Fabless-model core business planning and selling LIPPS-brand men's cosmetics
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales (cumulative Q3 FY2026 (ending August 2026)) | ¥3,117 million | ¥3,023 million (cumulative Q3 FY2025 (ending August 2025)) | ↑ |
| Segment operating profit (cumulative Q3 FY2026 (ending August 2026)) | ¥431 million | ¥639 million (cumulative Q3 FY2025 (ending August 2025)) | ↓ |
| Segment operating profit margin (cumulative Q3 FY2026 (ending August 2026)) | 13.8% | 21.1% (cumulative Q3 FY2025 (ending August 2025)) | ↓ |
| Segment sales (full year FY2025 (ending August 2025)) | ¥3,969 million | — | — |
| Segment operating profit (full year FY2025 (ending August 2025)) | ¥786 million | — | — |
| Number of retail stores handling Shampoo & Treatment | over 12,000 stores | — | ↑ |
Business Details
A fabless manufacturer business that plans and develops styling products, hair care, skincare, and makeup products, drawing on on-site expertise from the hair salon "LIPPS hair". Sales channels consist of three pillars: retail stores via wholesale, in-salon sales, and EC/mail order (Amazon, Rakuten, ZOZOTOWN, etc.). Major customers are Oyama Corporation (39.0% of sales), Amazon Japan G.K. (23.5%), and Chuo Bussan Co., Ltd. (12.0%). This is the core segment, accounting for approximately 92% of company-wide sales.
Recent Overview
Sales rose 3.1% year on year, but operating profit fell sharply by 32.6% due to increased SG&A expenses
In the cumulative third quarter of FY2026 (ending March 2026) (September 2025 to May 2026), sales of the Products Business were ¥3,117 million (up 3.1% year on year). Growth remained modest as the expansion of retail distribution for the Hair Wax Series reached a plateau, and EC sales of the Stylist Shampoo & Treatment, which had grown rapidly in the prior fiscal year, also settled down. On the other hand, SG&A expenses swelled due to aggressive investment in advertising and increased personnel costs, causing segment operating profit to fall sharply to ¥431 million (down 32.6% year on year). New initiatives are also underway, including the launch of new skincare products and the opening of an official Yahoo! Shopping store.
Key Products
Growth Drivers
- Continued expansion of retail store deployment for Shampoo & Treatment (over 12,000 stores handling the product), expanding the wholesale channel
- Category diversification through expanded sales of new skincare products such as Face Styling Wash and Toner
- Acquisition of new customers through multi-platform expansion of EC channels, including the opening of an official Yahoo! Shopping store
- Enhanced brand recognition through strengthened promotional measures such as advertising featuring well-known influencers and IP collaborations
- Strong product development capabilities leveraging on-site expertise from the hair salon "LIPPS hair"
Risks
- Slowdown in sales growth due to the reversal of the rapid EC sales growth (Stylist Shampoo & Treatment, etc.) seen in the prior fiscal year
- Risk of structural decline in profit margin due to increased SG&A expenses such as advertising costs and personnel expenses (operating profit margin deteriorated from 21.1% to 13.8%)
- Risk of sales concentration on specific customers (Oyama Corporation 39.0%, Amazon Japan 23.5%)
- Slowing growth of flagship products due to the plateauing of retail distribution expansion, centered on the Hair Wax Series
- Intensifying competition from new entrants in the men's cosmetics market
- Limited sales track record in product groups outside hair care, such as skincare and makeup
Last updated: November 26, 2025