Beauty Garage had the sort of problem companies usually prefer to have later: growth came through, but the infrastructure bill arrived first. In the year to April 2026, revenue rose 13.3% to ¥38.2 billion, yet operating profit fell 4.8% to ¥1.52 billion and profit attributable to owners dropped 8.5% to ¥933 million. Management tied much of that squeeze to temporary costs from opening and stabilising the new Kashiwa fulfillment center while parts of the old and new logistics sites ran in parallel.
| Metric | Year ended Apr. 2025 | Year ended Apr. 2026 |
|---|---|---|
| Revenue | ¥33,721 million | ¥38,197 million |
| Operating profit | ¥1,594 million | ¥1,518 million |
| Profit attributable to owners | ¥1,019 million | ¥932 million |
| Operating cash flow | ¥1,420 million | ¥553 million |
| Investing cash flow | -¥640 million | -¥1,903 million |
| Cash and cash equivalents, year-end | ¥4,441 million | ¥3,526 million |
| Annual dividend per share | ¥15.00 | ¥16.00 |
The demand picture itself was not especially grim. All three businesses posted record sales. Merchandise, still the core of the group, rose 12.5% to ¥31.2 billion and kept segment profit roughly flat at ¥1.25 billion. The supplemental materials say cosmetics and materials led product growth, mobile site and app sales expanded faster than other channels, and sales to nail and eyelash salons grew strongly.
The drag sat lower in the income statement. Store design sales reached a record ¥3.92 billion, helped by higher-value medical and clinic projects, but segment profit fell 33.0% to ¥183 million because of some unprofitable projects and higher materials and labour costs. Solutions sales jumped 25.0% to ¥3.08 billion, yet segment profit slipped 3.7% to ¥315 million after hiring and other investment to expand services.
Cash flow shows the logistics bill more clearly. Operating cash flow fell to ¥553 million from ¥1.42 billion, while investing cash outflow widened to ¥1.90 billion from ¥640 million, mainly because of tangible-asset spending for the new Kashiwa site. Year-end cash and cash equivalents dropped to ¥3.53 billion from ¥4.44 billion. The supplemental presentation says the Kashiwa FC opening and delayed ramp-up were worth roughly ¥580 million of negative profit impact, including extra temporary staffing, freight, packaging and depreciation costs, although it also says those pressures eased in the fourth quarter as the transfer of consumables shipping was mostly completed.
Management is asking investors to treat that squeeze as temporary. The board approved an ¥8 year-end dividend, payable from July 29, keeping the full-year payout at ¥16 per share, up from ¥15 a year earlier. Beauty Garage said results came in below its initial plan, but kept the payout because the main drag was the temporary cost increase tied to the delayed logistics ramp-up and because its medium-term plan calls for a higher payout ratio. It is also guiding for revenue of ¥43.15 billion and operating profit of ¥2.22 billion in the current year, alongside an annual dividend forecast of ¥18. That rebound case rests heavily on the promise that the new warehouse now behaves more like an asset and less like a very expensive rehearsal.