Beauty Garage Inc., the Tokyo-listed wholesaler of professional beauty supplies, said quarterly operating profit nearly doubled after it finished untangling a costly logistics bottleneck, even as its online store still cannot take credit-card payments at checkout seven months into an unresolved data-security investigation.
For the quarter to July 2026, the company, which supplies hair salons, spas, nail bars and beauty clinics, reported net sales of ¥10.25bn, up 13.7% from a year earlier. Operating profit rose 98.4% to ¥475.8mn, ordinary profit climbed 88.2% to ¥456.8mn, and net profit attributable to shareholders rose 67.8% to ¥273.3mn.
Management credited the profit jump largely to a fix that has nothing to do with pricing or demand: ending the parallel operation of its old and new logistics hubs. The company had been running both its legacy Kashiwa distribution center and a newer Kashiwa fulfillment center side by side, temporarily inflating shipping and handling costs. With that overlap resolved and the new center running at full capacity, those costs came back down to what the company called an appropriate level, and gross margin at the core merchandise business improved as a result.
The merchandise division, 84.5% of group sales, remains the growth engine: revenue rose 14.4% to ¥8.66bn and segment profit rose 92.3% to ¥449.8mn. The solutions business, which covers salon leasing, insurance and payment support, grew 25.0% to ¥839.9mn in revenue and 63.3% to ¥93.9mn in segment profit. The store-design unit was the weak spot: revenue fell 2.6% to ¥750.9mn and its segment loss widened to ¥10.1mn from ¥5.5mn a year earlier, as the project mix shifted away from higher-priced medical and clinic fit-outs.
| Segment | Q1 revenue | YoY change | Segment profit/loss |
|---|---|---|---|
| Merchandise (物販) | ¥8.66bn | +14.4% | ¥449.8mn |
| Store design | ¥750.9mn | -2.6% | -¥10.1mn |
| Solutions | ¥839.9mn | +25.0% | ¥93.9mn |
Beauty Garage left its full-year guidance unchanged from the figures issued in June: sales of ¥43.15bn, operating profit of ¥2.22bn and net profit of ¥1.35bn.
The unresolved thread is the credit-card matter. The company first flagged a suspected leak of card data from its e-commerce site on February 6, 2026, and suspended card payments that day. An external forensic review followed, with findings reported to police and administrative authorities, but it had not reached a clear determination by the time of the June earnings release. On August 12, the company brought in a new external specialist firm to reinvestigate, and said card payments will resume only once the cause is identified and prevention measures are in place. Customers can currently pay by PayPay, invoice-based deferred payment, cash on delivery, bank transfer or convenience-store payment, but not by card at checkout; the cash-on-delivery option does allow card payment when the goods arrive.
Beauty Garage says it judges the financial impact of the card suspension to be minor so far and will disclose promptly if that changes. Whether that assessment holds depends on how long the newest investigation takes, and whether it finally identifies what, if anything, was compromised.