Analyst Summary
- Number of Salons: 308 as of January 2025.
- Total Customers Served: 75,451 in January 2025.
- Sales per Customer: ¥7,145 on average during January 2025.
- Customer Repeat Ratio: 76.4% in January 2025.
- Operation Ratio: 44.8% for the month of January 2025.
- Cumulative Number of Contracts with Corporate Insurance Associations: 97 as of January 2025.
- Cumulative Number of Users of Lav® app: 9,117 individuals as of January 2025.
Opportunities and Risks
- The market for specific health checkups and guidance services is expected to expand due to the government’s effort to achieve the set target implementation rates.
- The Company’s ability to achieve its development goals for its business and execute and evolve its growth strategies, priorities and initiatives.
- The Company’s ability to sell certain of its owned salons to investors, and receive management fees from such sold salons, on acceptable terms.
- Changes in Japanese and global economic conditions and financial markets, including their effects on the Company’s expansion in Japan and certain overseas markets.
- The Company’s ability to achieve and sustain profitability in its Digital Preventative Healthcare Segment.
- The fluctuation of foreign exchange rates, which affects the Company’s expenses and liabilities payable in foreign currencies.
- The Company’s ability to hire and train a sufficient number of therapists and place them at salons in need of additional staffing.
- Changes in demographic, unemployment, economic, regulatory or weather conditions affecting the Tokyo region of Japan, where the Company’s relaxation salon base is geographically concentrated.
- The Company’s ability to maintain and enhance the value of its brands and to enforce and maintain its trademarks and protect its other intellectual property.
- The financial performance of the Company’s franchisees and the Company’s limited control with respect to their operations.
- The Company’s ability to raise additional capital on acceptable terms or at all.
- The Company’s level of indebtedness and potential restrictions on the Company under the Company’s debt instruments.
- Changes in consumer preferences and the Company’s competitive environment.
- The Company’s ability to respond to natural disasters, such as earthquakes and tsunamis, and to global pandemics, such as COVID-19.
- The regulatory environment in which the Company operates.