Core Insights - KOSÉ Corporation reported a slight increase in overall sales amid ongoing adjustments in the global beauty market, but is facing profit challenges and is exploring new growth paths through structural adjustments [1][20]. Financial Performance - For the first three quarters, KOSÉ's sales reached 240.5 billion yen (approximately 11.1 billion RMB), a year-on-year increase of 0.7% (1.3% excluding currency effects) [1][2]. - Operating profit decreased by 27.8% to 13.5 billion yen (approximately 623 million RMB), primarily due to increased sales management expenses [1][2]. - The net profit attributable to shareholders was 9.3 billion yen (approximately 426 million RMB), showing a slight decline of 0.3% [2]. Segment Performance - The cosmetics division reported sales of 189.9 billion yen (approximately 8.77 billion RMB), a year-on-year increase of 1.3%, but operating profit fell by 24.6% to 11.6 billion yen (approximately 536 million RMB) [3][4]. - The beauty division's sales were 48.3 billion yen (approximately 2.23 billion RMB), down 2.1%, with operating profit declining by 22.7% to 5.2 billion yen (approximately 240 million RMB) [3][4]. - The other segment saw the highest growth, with sales of 2.1 billion yen (approximately 97 million RMB), an increase of 18.6%, and operating profit of 1.1 billion yen (approximately 51 million RMB), up 17.9% [3][4]. Brand Performance - The DECORTÉ brand showed signs of recovery after two years of decline, with sales increasing by 1.2% to 50.9 billion yen (approximately 2.35 billion RMB) [6][8]. - Tarte's sales slightly increased by 0.96% to 52.4 billion yen (approximately 2.42 billion RMB), surpassing DECORTÉ [5]. - ALBION's net sales reached 44.9 billion yen (approximately 2.07 billion RMB), achieving a growth of 2.75% [5]. Regional Performance - The Japanese market saw a significant increase in net sales by 15% to 157 billion yen (approximately 7.25 billion RMB) [11]. - The North American market reported a 3% increase in net sales to 53.5 billion yen (approximately 2.47 billion RMB) [9]. - The Asian market (excluding Japan) was the only region to experience a decline, with net sales down 1% to 29.8 billion yen (approximately 1.38 billion RMB) [13][17]. Strategic Adjustments - KOSÉ is undergoing internal structural reforms, including changes in organization and personnel, to address challenges and enhance brand synergy [22][24]. - The company has acquired a 10% stake in foxtale Consumer Pvt. Ltd. to strengthen its presence in the Indian market [22]. - KOSÉ plans to implement cost-effective promotional activities and focus on key brands to drive growth in the Chinese market [20][22].