YAMANO HOLDINGS CORPORATION
7571・Standard Market・Retail Trade
Beauty Business
Beauty Business driving stable revenue and cash generation in the Core Value domain
| Period | Current | Previous | Change |
|---|---|---|---|
| Core Value segment sales | ¥12,479 million | ¥12,202 million | ↑ |
| Core Value segment profit (on an operating income basis) | ¥450 million | ¥166 million | ↑ |
| Core Value segment assets | ¥5,169 million | ¥5,561 million | ↓ |
| Core Value segment depreciation and amortization | ¥33 million | ¥30 million | ↑ |
| Core Value segment increase in tangible and intangible fixed assets | ¥26 million | ¥42 million | ↓ |
Business Details
The Beauty Business, which constitutes the Core Value segment, is an existing business centered on the operation of beauty salons and nail salons. Under the medium-term management plan "Tsunageru2027," it plays a role in generating stable profits and enhancing cash flow generation capability. The effects of unprofitable store closures and operational resource optimization implemented in the previous fiscal year have continued, and the revenue base has been further strengthened through price revisions, service menu enhancements, an increase in franchise stores, and strengthened procurement control. Note that the segment classification was reorganized from this fiscal year, and the Beauty Business is now integrated into and disclosed as part of the Core Value segment; KPIs for the Beauty Business alone are not disclosed in the financial results summary.
Recent Overview
Sales declined due to unprofitable store closures, but profit improved significantly due to price revisions and franchising promotion
In FY2026 (ending March 2026), sales in the Beauty Business declined due to the effects of operational resource optimization and unprofitable store closures implemented in the previous fiscal year. On the other hand, profit improved significantly as the revenue base was further strengthened through improved sales composition via price revisions and enhanced service menus, more efficient store operations, an increase in franchise stores, and strengthened procurement control. Profit for the Core Value segment as a whole increased 170.9% year on year to ¥450 million, supporting profit growth for the group as a whole. Note that because the segment classification was reorganized from this fiscal year, figures for the Beauty Business alone are not disclosed.
Key Products
Growth Drivers
- Continuation of fixed cost reduction effects from unprofitable store closures
- Improvement in sales composition and gross profit margin through price revisions and enhanced service menus
- Expansion of the asset-light revenue base through an increase in franchise stores
- Thorough cost management through strengthened procurement control
- Improvement in per-employee productivity through on-site operational improvements
- Serving as the group's cash generation base as part of the Core Value segment, underpinning growth investment in the New Value segment
Risks
- Risk of continued decline in sales associated with unprofitable store closures and consolidation of locations
- Profit pressure from rising labor costs due to severe labor shortages
- Risk of reduced competitiveness due to delayed response to changes in the customer base in store locations
- Increased difficulty in service quality management associated with the promotion of franchising
- Risk that integration into the Core Value segment makes it difficult to grasp and monitor the performance of the Beauty Business on a standalone basis
Last updated: June 25, 2026