Today, KOSÉ released it financial report in the first half of 2025. KOSÉ posted a 0.9% year-on-year increase in consolidated sales, reaching 160.5 billion yen. Excluding foreign exchange effects, the growth was 1.5%. This performance was driven by strong sales in Japan, particularly for high prestige brands like DECORTÉ and ALBION, which offset declines in China. Overseas markets accounted for 34.7% of total sales.
Despite the top-line growth, profitability declined. Operating profit fell 17.7% to 11.3 billion yen, largely due to higher selling, general and administrative expenses. These included goodwill amortization and costs related to the newly consolidated PURI CO., LTD., as well as increased logistics expenses at Tarte. Ordinary profit declined sharply by 49.1% to 9.6 billion yen due to foreign exchange losses from yen appreciation. Net profit attributable to owners of the parent dropped 38.9% to 7.1 billion yen.
In the cosmetics segment, which accounts for the bulk of KOSÉ’s business, sales rose 0.9% to 127.9 billion yen, while operating profit declined 20.0% to 9.8 billion yen. Within this segment, the high prestige category recorded mixed results. Sales of DECORTÉ rose in Japan but fell across Asia, while ALBION and newly added PURI CO., LTD. contributed positively. Prestige sales increased overall, supported by steady domestic sales and international growth of SEKKISEI.
Mainland China returned to profitability in the first half, helped by structural reforms. However, sales fell due to a cautious sales strategy and voluntary shipment controls in the duty-free channel. Tarte, which had a weak first quarter, recovered in Q2 thanks to stronger online sales, though its earnings were still pressured by higher marketing and logistics costs.
In the cosmetaries segment, sales remained flat at 31.3 billion yen. Key brands like KOSÉ Cosmeport, Visée, and FASIO experienced weaker demand, though MAKE KEEP performed well. Operating profit declined 3.4% to 3.8 billion yen due to margin pressure.
The “Others” business segment saw strong gains, with sales rising 17.4% to 1.35 billion yen and operating profit up 26.0% to 722 million yen, supported by increased amenity product sales and improved cost efficiency.
Geographically, Japan led growth with sales up 3.6% to 104.8 billion yen, driven by robust demand for DECORTÉ and ALBION, including pre-price revision purchases and new product launches. In Asia, sales dropped 9.6% to 21.1 billion yen due to strategic shipment controls and a cautious approach to large sales events in China. North America recorded a modest 1.2% sales increase to 30.8 billion yen, buoyed by e-commerce performance at Tarte and large SEKKISEI orders. Sales in other markets, including Europe, declined 8.2% to 3.8 billion yen.
