TOKYO, Apr 13 (Pulse News Wire) – Lipps Co., Ltd. (373A.T) reported revenue of ¥100 million for the second quarter ending June 2026, marking its highest sales to date.
However, the company anticipates slower growth rates moving forward due to reduced promotional activities and a lull in new product releases. In the cosmetics sector, Lipps achieved record-high sales driven by continued customer loyalty among young adults. Despite this success, the company expects a deceleration in revenue growth rate as new store placements stabilize and fewer new products are launched during the fiscal year. For the salon franchise division, Lipps forecasts a decline in revenues and profits due to industry-wide challenges related to staff turnover and reduced royalty income.
To address these issues, the company plans to increase marketing expenses aimed at acquiring new customers for existing styling agents and shampoo treatments. Looking ahead, Lipps projects overall revenue of ¥122 billion for the full fiscal year, representing a 22% increase compared to the previous year. However, operating profit, ordinary profit, and net profit are expected to decrease by 20%, 23%, and 25%, respectively, due to higher costs associated with organizational restructuring and talent acquisition efforts. Lipps continues to focus on expanding its brand presence through various channels, including retail stores, e-commerce platforms, and salons, targeting mid-to-high price segments.
The company also remains committed to developing new product lines and exploring potential mergers and acquisitions to drive long-term growth.
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