Beauty Garage Inc. (TSE: 3180), which operates a comprehensive B2B platform for the beauty and salon industry, reported full-year results for the year ended April 2026 (May 1, 2025–April 30, 2026) on June 9, 2026. Consolidated revenue rose 13.3% year-on-year to ¥38,197 million, but profit moved the other way: operating profit slipped 4.8% to ¥1,518 million, ordinary profit eased 4.9% to ¥1,506 million, and net profit fell 8.5% to ¥932 million, from ¥1,019 million a year earlier. Earnings per share came in at ¥74.38, down from ¥80.87.
The divergence between strong top-line growth and softer earnings reflects margin pressure from growth investment, as the company expanded its platform and absorbed the newly consolidated Medical Garage Inc. during the year. The operating margin narrowed to roughly 4.0% of revenue, while return on equity held at 11.6%.
Platform scale grows even as margins compress
Beauty Garage runs an end-to-end B2B platform for the beauty and salon market: wholesale and e-commerce distribution of salon equipment, supplies and cosmetics, alongside salon-opening support, M&A brokerage and OEM/private-brand product development. Double-digit revenue growth was driven by continued expansion across these lines and the addition of Medical Garage, which broadened the group's reach into adjacent professional markets. The earnings dip was a deliberate trade-off: the company prioritised investment in growth — headcount, logistics and platform capability — ahead of near-term profit, leaving margins temporarily compressed even as the underlying business scaled.
Balance sheet stays sound; dividend raised to ¥16
Total assets stood at ¥18,535 million and net assets at ¥8,701 million at year-end, for an equity ratio of 45.3% and book value per share of ¥668.80. Operating cash flow was ¥553 million. The company raised its full-year dividend to ¥16.00 per share (¥8 interim + ¥8 year-end), totalling about ¥200 million for a payout ratio of 21.5%. For FY4/2027 it has guided for a further increase to ¥18.00 (¥9 + ¥9), signalling confidence in the earnings recovery ahead.
FY2027 guidance points to a sharp profit rebound
For the year ending April 2027, Beauty Garage guides for revenue of ¥43,153 million (+13.0%) and operating profit of ¥2,217 million (+46.0%), with ordinary profit of ¥2,200 million (+46.0%) and net profit of ¥1,351 million (+44.8%), equivalent to EPS of ¥107.71. The guided profit rebound implies the current year's margin compression is expected to reverse as the growth investments mature and the enlarged platform — including Medical Garage — begins to contribute more fully to the bottom line.
| Metric | FY4/2026 | FY4/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 38,197 | 33,721 | +13.3% |
| Operating profit (¥ million) | 1,518 | 1,594 | −4.8% |
| Ordinary profit (¥ million) | 1,506 | 1,584 | −4.9% |
| Net profit (¥ million) | 932 | 1,019 | −8.5% |
| EPS (¥) | 74.38 | 80.87 | −8.0% |
| Total assets (¥ million) | 18,535 | — | — |
| Net assets (¥ million) | 8,701 | — | — |
| Equity ratio | 45.3% | — | — |
| Annual dividend (¥) | 16.00 | — | — |
| FY2027 guidance — revenue (¥ million) | 43,153 | — | +13.0% |
| FY2027 guidance — operating profit (¥ million) | 2,217 | — | +46.0% |
| FY2027 guidance — net profit (¥ million) | 1,351 | — | +44.8% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.