TO OUR SHAREHOLDERS
I would like to express my appreciation for your continued support and understanding of the Company.
The 24th business term (the fiscal year ended June 30, 2023) brought back the sight of people out in public without masks, as well as foreign visitors flooding tourist spots and other destinations around Japan.
These positive signs also have been reflected in our results. Sales of the store business grew by approximately 50% year on year, a huge leap even compared to pre-pandemic levels. Our large-scale flagship store near Harajuku Station, @cosme TOKYO, in particular, turned positive, growing into a real major source of revenue. As a result, we recorded our highest-ever consolidated net sales and achieved our first positive operating income in four fiscal years. We believe this was not only attributable to environmental tailwinds, but also the values ever built up by istyle.
In other words, @cosme has become a presence that is more clearly chosen by customers. This has enabled the brands to actively expand across our media, E-commerce, and physical stores, creating a virtuous cycle where the upsurge in their activities attracts more customers to @cosme. As a result, E-commerce sales continued to grow even amid vigorous sales in the physical store market, rising by approximately 16% year on year, and I feel that the coordination between platforms is growing ever stronger.
During the COVID-19 pandemic, I was often asked why we persevere with the store business. It is because some values can only be created in a physical setting. Places for face-to-face communication, where customers can directly come in contact with cosmetics, seek advice, and discover new products, will be an absolute strength for us in the coming digital society with a flood of information. I think the fact that we have managed to grow more quickly than other companies and other lines of business, building a unique position in the market, is attributable to the continuing pursuit of value through both online and offline sectors. Seeing our customers enjoy shopping at our stores and watching our brands animated with vibrant activity gives me a firm belief that we have been moving in the right direction.
With the COVID-19 pandemic finally drawing to a close, we aim to further refine the values we have built so far and make the 25th business term (the fiscal year ending June 30, 2024) our first step towards medium- and long-term growth.
I greatly appreciate your ongoing support and understanding.
September 2023
Tetsuro Yoshimatsu, Chairperson and Chief Executive Officer
