Sales: $3.0 billion
Kazutoshi Kobayashi, president and chief executive officer; Shinichi Mochizuki, senior executive officer and chief financial officer
Skin care, cosmetics and toiletries sold under several brand names in different sectors. High Prestige: Decorte, Jill Stuart, Sekkisei MYV, Infinity, Predia, Addiction, Paul Stuart, Awake, Tarte. Prestige: Sekkisei, One by Kosé, Shirosumi, Hadakiwami, Astablanc, Esprique, Carté Clinity, Crie, Phil Naturant, Formule, Maihada. Cosmetaries: Visée, Fasio, Elsia, Nature & Co, SportsBeauty, Nailholic, Stephen Knoll New York, Softymo, Je l’aime, Clear Turn, Suncut, Kokutousei, Grace One
Decorté Comfort Day Mist Set & Protect, AQ Lotion and AQ Emulsion Brightening; Jill Stuart Moonlit Dew lip color; Sekkisei MYV lotion, emulsion and cream
Comments: Sales fell 1.6% last year, and sales of cosmetics declined 1.2%. In the “high prestige” channel, higher sales of Decorté and Infinity brands were offset by declines in Albion and Tarte. Similarly, in the prestige cosmetic segment, higher Esprique sales were offset by lower Sekkisei sales. Within the cosmetaries category, a catch-all segment for personal care products, sales declined 3.6%, as higher sales of hair and skin care brands such as Stephen Knoll, Bioliss and Grace One, were offset by sales declines for Clear Turn and Visée.
By region, sales in Japan fell 7.3%, as sales to tourists tumbled more than 37%; Kosé blamed the decline on a slowdown in Q4 results due to the COVID-19 crisis, as well as previous stockpiling by consumers ahead of a consumption tax hike and an expansion of Asia and duty-free store sales channels. In contrast, the expansion of duty-free stores in South Korea, along with gains in China, helped sales in Asia jump 25%. Sales in North America and other regions fell 1.2%, as gains in Europe were not enough to offset lower US sales.
Kosé said COVID-19 knocked nearly 7% off its initial sales estimate for the year. Looking ahead to the end of the current fiscal year, the company expects overall sales to drop more than 12% due to lockdowns, stay-at-home requests and travel restrictions caused by COVID-19.
Still, Kosé remains determined to become a company with a global presence, as noted in its Future Vision 2026 statement. The company said it will grow by accelerating brand globalization, develop unique products and explore new markets. Furthermore, it will use digital technology to provide a better customer experience and finally, create a sustainability strategy across its entire value chain.
The ultimate goal is to become a customer-driven company appreciated by people worldwide, according to Kosé executives.