Improved Free Cash FlowA TTM free cash flow growth of 63.76% indicates the business is sustainably improving cash generation. Durable FCF strengthens ability to fund brand investment, pay down debt, execute restructuring savings and maintain the dividend, reducing refinancing and liquidity risk over 2–6 months.
High Gross MarginA gross margin near 77% reflects strong product-level economics and pricing power in prestige cosmetics. High gross margins provide structural buffer to absorb SG&A or promotional pressure, enabling funding for R&D, marketing and channel investment while supporting margin recovery over the medium term.
Structural Reforms & Profitability TargetsAnnounced structural reforms — JPY25bn cost savings, voluntary retirements and explicit margin targets (7% in 2026, >10% by 2030) — are multi-year changes. If executed, they permanently lower cost base and improve operating leverage, supporting sustainable margin expansion and cash conversion.