KOSE Holdings Corporation
4922・Prime Market・Chemicals
Cosmetics Business
KOSÉ Group's core segment, the Prestige and High-Prestige cosmetics business accounting for roughly 80% of net sales.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Q1 FY2026, ending December 2026) | ¥63,919 million | ¥63,510 million (Q1 FY2025, ending December 2025) | ↑ |
| Operating profit (Q1 FY2026, ending December 2026) | ¥2,334 million | ¥5,995 million (Q1 FY2025, ending December 2025) | ↓ |
| Operating margin (Q1 FY2026, ending December 2026) | 3.7% | 9.4% (Q1 FY2025, ending December 2025) | ↓ |
| Net sales (full year FY2025, ending December 2025) | ¥262,303 million | – | — |
| Operating profit (full year FY2025, ending December 2025) | ¥16,768 million | – | — |
| Share of consolidated net sales (Q1 FY2026, ending December 2026) | 81.7% | 80.4% (Q1 FY2025, ending December 2025) | ↑ |
Business Details
The Prestige and High-Prestige cosmetics business, developing a diverse range of brands both domestically and internationally, including KOSÉ, SEKKISEI, ONE BY KOSÉ, COSME DECORTE, ALBION, Tarte, and PANPURI. Domestically, wholesale distribution is conducted through KOSÉ Cosmetics Sales Co., Ltd. and others, while overseas, a sales structure has been established through subsidiaries in each country (China, Taiwan, South Korea, the United States, Thailand, etc.). Net sales for the first quarter of FY2026 (ending December 2026) were ¥63,919 million, making it the core segment that accounts for 81.7% of consolidated net sales.
Recent Overview
Net sales rose slightly, but operating profit fell sharply by 61.1% year on year, mainly due to concentrated promotional expenses.
In the first quarter of FY2026 (ending December 2026), net sales in the Cosmetics Business were ¥63,919 million (up 0.6% year on year), securing a slight increase in revenue. Within High-Prestige, Tarte and COSME DECORTE posted revenue growth, while ONE BY KOSÉ performed well in the Prestige category. On the other hand, operating profit fell sharply to ¥2,334 million (down 61.1% year on year). The main causes were the decrease in gross profit due to the revenue decline in the ALBION business, along with the concentration of large-scale promotional expenses for the 70th anniversary celebration and marketing costs associated with the new Sephora expansion for the Tarte business in this quarter.
Key Products
Growth Drivers
- Continued strong performance of "ONE BY KOSÉ" both domestically and internationally, and the effect of new product launches
- Expansion of North American sales in the Tarte business through strong TikTok sales performance and new Sephora rollout (record-high retail sell-through performance)
- Double-digit percentage revenue growth in the Asia region driven by recovery in duty-free demand in China (Hainan Island) and enhanced product lineup for Chinese New Year
- Success of large-scale e-commerce sales initiatives in mainland China
- Increased revenue from PANPURI (PURI CO.,LTD.)'s strong domestic sales in Thailand and new store openings
- Sales contribution in Japan from new product launches by COSME DECORTE
Risks
- Risk of continued revenue decline trend in the ALBION business (reversal effect of the prior-year renewal and pre-price-revision rush demand)
- Profit pressure from increased marketing investment such as the Tarte business's 70th anniversary promotions (concentration of expenses in a single quarter)
- Continuation of market bifurcation in China due to the rise of domestic brands and weak personal consumption
- Impact on the Tarte business from rising consumer price sensitivity and uncertainty over tariff policy in the U.S. market
- Risk of fluctuation in inbound demand (slowdown in Chinese tourist spending due to travel advisories from the Chinese government, etc.)
- Foreign exchange risk (overseas sales ratio of 38.5%, with the U.S. dollar and Chinese yuan as major currencies)
- Risk of impairment of goodwill and intangible fixed assets (related to the PANPURI acquisition)
Last updated: March 24, 2026