Kose’s Prestige Skincare Strengths Untouched by Temporary Travel Retail and China Setback

Accelerating international growth, boosting unique product offerings, and expanding the business reach and customer base are three pillars of Kose’s growth strategies. The financial targets including JPY 500 billion in sales, 16% operating margin, and a 15% return on equity for the Vision 2026 midterm plan look challenging without acquisitions while uncertainties surrounding China present the greatest downside risk, in our view. Kose aims to raise overseas sales contribution to 50% from 43% and to generate at least 25% of sales from the e-commerce and travel retail channels by 2026.