Tourists jumpstart Kose Corporation profits
Japanese multinational personal care company Kose Corporation says it is on track to an approximate 40 per cent jump in interim first-half operating profit, to about ¥26 billion (US$230 million).
It attributes this to brisk sales of high-end cosmetics to tourists visiting Japan.
This possibility far surpasses the projected 2 per cent increase to ¥19 billion, which would itself have been a record for an April-September period.
Sales had been predicted to rise 7 per cent to ¥134 billion, but are instead growing 15 per cent to about ¥145 billion.
Kose says high-price, wide-margin skincare products offered at department stores, like the Albion and Cosme Decorte brands, have sold well, mainly to tourists, many of whom continue to use the products after returning home. This is boosting Cosme Decorte sales in China, Hong Kong and elsewhere.
In the second half, Kose plans to increase marketing spending to help promote product rollouts.
For the full year through to March, Kose has projected a 6 per cent rise in operating profit to ¥41.5 billion and sales of ¥282 billion, also up 6 per cent.
Japan Department Stores Association figures show tax-free sales of consumables like cosmetics and food doubled in July and August, with the trend seemingly continuing last month.