Cosmetics & Personal Care Products: Kose, Pigeon F12/26 1Q Results

Research evidence excerpt

Cosmetics & Personal Care Products: Kose, Pigeon F12/26 1Q Results

Update

May 14, 2026 04:11 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MCosmetics & Personal Care Products | Japan Haruka Miyake

Equity Analyst

Kose, Pigeon F12/26 1Q Results Haruka.Miyake@morganstanleymufg.comJully Ussui +81 3 6836-5421

Research Associate

Jully.Akina.Ussui.Nakao@morganstanleymufg.com +81 3 6836-5408

Kose: Progress is in line with the company plan, but we see a

Cosmetics & Personal Care Products

high risk that weak headline figures will be viewed negatively. Japan

However, revenue growth is likely to improve from 2Q, Industry View In-Line

suggesting any share price decline should be limited. Pigeon:

Positive impression given progress above the company plan, but

we expect a neutral share price reaction as Middle East-related

risks remain a concern.

Kose (EW): 1Q sales declined 2% YoY on a currency-neutral basis, and OP was

¥1.0bn (YoY –¥5.7bn), a significant decline, falling well short of our and market

expectations, though both sales and OP were broadly in line with the company plan.

1Q revenue growth (yen basis) was –1% YoY overall (Japan -7%, Asia +16%, North

America and others +7%), with a particularly large decline in Japan (our forecast was

+1% overall, including Japan -5%; while Albion exceeded our expectations, Decorte,

Cosmeport, and other brands underperformed). At the briefing, Kose explained that

in addition to the rebound decline from strong demand for Albion in the prior year,

there was also a reaction to strong sell-in across brands and businesses in 4Q25,

while sell-out remained solid (sell-out: Decorte was slightly above +3% in 1Q with

acceleration in April; One by KOSE saw double-digit growth; Sekkisei’s key

brightening series achieved double-digit growth).