HOUSE OF ROSE Co.,Ltd.JP:7506Stock Price

Market cap
¥6.7B
P/E ratio
157.3x
House of Rose sells cosmetics and bath products through its own stores and wholesale to other retailers, offering personalized skincare advice and beauty services.

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Business Overview

House of Rose is a company primarily engaged in the retail and wholesale business of cosmetics, bath products, and miscellaneous goods. The company operates through 4 subsidiaries and 1 affiliated company across three main business segments: direct store product sales, wholesale sales, and direct store services.

In the direct store product sales segment, House of Rose sells its own brand cosmetics and bath products through company-operated stores. This allows the company to provide products directly to customers and communicate the brand's identity and values. Through in-store customer service, the company offers product recommendations tailored to customer needs.

In the wholesale sales segment, House of Rose supplies products to other retailers. This enables the company's products to reach a broader market and a larger consumer base. This segment serves as a key revenue pillar for the company.

In the direct store services segment, House of Rose provides services at its stores. Specifically, the company deepens customer relationships through skincare and makeup advice, product experience events, and similar activities. This approach aims to increase customer satisfaction and build a loyal customer base.

Management Policy

House of Rose aims to become a "strong and good company" as its growth strategy, prioritizing customer satisfaction in product development and sales. The company is focusing particularly on skincare and bath/body care products to gain support from female customers and achieve stable revenue and profit growth.

The company emphasizes staff efficiency and aims to improve operating profit margin. The current operating profit margin is 1.1%, with a target of 5.0%, as the company works toward sustained improvement in corporate value. This effort focuses on enhancing organizational efficiency and profitability across the company.

The medium-term management plan seeks to improve brand value and operational efficiency through restructuring the cosmetics business and advancing digitalization. Through organizational restructuring, the company has established a Sales Division to oversee EC and wholesale operations in an integrated manner.

House of Rose has acquired the cosmetics brand "MAMA BUTTER," which offers gentle skincare products formulated with shea butter. The brand is being developed for the company's wholesale and EC operations, with plans for further market expansion.

In the direct store product sales business, the company is restructuring "素肌みがき" to enhance brand value and improve profitability. The company is advancing product development with sustainability in mind and focusing on service improvements to enhance customer convenience.

In the EC business, the company has decided to list products on the Qoo10 mall to expand its customer base among younger consumers. The company is outsourcing order processing for its own website to streamline operations while improving services such as weekend shipping.

In the wholesale business, the company is reviewing transaction terms with regional department stores and expanding shelf space for "Relax Time" to improve profitability. The company is also working to reduce losses from returns and disposal.

In the direct store service business, the company aims to improve relaxation salon techniques and customer satisfaction to increase repeat rates. Through improvements to the online reservation system, the company is also working to acquire new customers.