UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November, 2023

 

Commission File Number 001-39809

 

MEDIROM HEALTHCARE TECHNOLOGIES INC.

(Translation of registrant’s name into English)

 

2-3-1 Daiba, Minato-ku
Tokyo 135-0091, Japan

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

x Form 20-F ¨ Form 40-F

 

 

 

 

  

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

 

Issuance of Press Release

 

On November 24, 2023, MEDIROM Healthcare Technologies Inc. (the “Company”) issued a press release announcing its major Key Performance Indicators, or KPIs, updated for the month of October 2023.

 

The press release furnished in this report as Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent specifically provided in such a filing.

 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1    Press release of the Company, dated November 24, 2023

 

 

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  MEDIROM Healthcare Technologies Inc.
Date: November 24, 2023    
  By: /s/ Fumitoshi Fujiwara
    Name: Fumitoshi Fujiwara
    Title: Chief Financial Officer

 

 

 

Exhibit 99.1

 

 

MEDIROM Healthcare Technologies Inc. Announces October 2023

Key Performance Indicators (KPIs)

 

Total Customers Served: 82,249 – Sales Per Customer: JPY 6,891 – Customer Repeat Ratio: 77.4%

 

New York/November 24, 2023 – MEDIROM Healthcare Technologies Inc. (NasdaqCM: MRM), a holistic healthcare company based in Japan (the “Company”), today announced its major Key Performance Indicators, or KPIs, updated for the month of October 2023. Data is provided for all salons for which comparative financial and customer data is available and excludes certain salons where such information is not available.

 

Salon Operation Business

 

The following monthly KPIs provide insight into the business fundamentals and progress of the Company, updated for the month of October 2023:

 

·The number of salons was 315 in October 2023, up from 313 in the year-ago period.
·Total customers served increased to 82,249 in October 2023 from 72,252 in the year-ago period. The increase is primarily attributed to the increase in the number of salons with available financial and customer data.
·Sales per customer slightly increased to JPY 6,891 in October 2023 from JPY 6,630 in the year-ago period. The increase is primarily attributed to the price revisions and the upselling of value-added optional services.
·Repeat ratio, a measure of repeat customers, decreased to 77.4% in October 2023 from 81.8% in the year-ago period. The decrease is primarily attributed to the inclusion of financial and client data of salons in public bath houses, which tend to have a relatively lower repeat ratio than our other relaxation salons.
·Operation ratio decreased to 45.4% in October 2023 from 50.0% in the year-ago period.
·The total number of salons with data increased to 291 in October 2023 from 234 in October 2022. The increase is attributed to the completion of the replacement of the customer management system in certain salons. The number of salons with data decreases when we close salons with data available and increases as we open salons with such data.

 

   Number of
Salons(*1)		  Number of
Salons with
Data(*2)		  Total Customers
Served(*3)		   Sales per
Customer(*4)		   Repeat
Ratio(*5)		   Operation Ratio(*6) 
October-22  313  234   72,252   JPY6,630    81.8%   50.0%
November-22  312  232   65,724   JPY6,717    82.6%   48.8%
December-22  312  231   68,571   JPY6,913    82.8%   50.1%
January-23  312  266   77,657   JPY6,624    77.9%   48.3%
February-23  312  266   71,707   JPY6,612    78.5%   47.3%
March-23  311  273   78,063   JPY6,680    77.4%   45.8%
April-23  313  284   83,130   JPY6,669    77.0%   47.2%
May-23  314  284   86,895   JPY6,660    75.7%   47.5%
June-23  314  287   81,280   JPY6,801    76.0%   46.7%
July-23  315  290   88,240   JPY6,985    76.0%   48.1%
August-23  316  291   87,224   JPY6,946    74.6%   48.0%
September-23  315  290   84,393   JPY6,991    76.7%   47.0%
October-23  315  291   82,249   JPY6,891    77.4%   45.4%

 

(*1) Number of Salons: Includes our directly-operated salons and franchisees’ salons.

(*2) Number of Salons with Data: The number of salons for which comparable financial and customer data is available.

(*3) Total Customers Served: The number of customers served at salons for which comparative financial and customer data is available.

(*4) Sales Per Customer: The ratio of total salon sales to number of treated customers at all salons for which comparable financial and customer data is available.

(*5) Repeat Ratio: The ratio of repeat customer visits to total customer visits in the applicable month for all salons for which comparable financial and customer data is available.

(*6) Operation Ratio: The ratio of therapists’ in-service time to total therapists’ working hours (including stand-by time) for the applicable month for all salons for which comparable financial and customer data is available.

 

 

 

 

 

  

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* Repeat ratios shown in the chart above do not include salons in public bath houses. In October 2023, the repeat ratios for all salons and salons in public bathhouses only were 77.4% and 59.3%, respectively.

 

 

*Since July 2021, the salon operation business has been managed by Wing Inc., which is a wholly-owned subsidiary of the Company.

 

Health Tech Business (Lav®)

 

The Company offers a government-specific health guidance program (the “Program”) using Lav®, an on-demand training application developed by the Company. The Program is designed to be less burdensome for the users and is delivered through a completely remote support style using the web remote interview and chat function of Lav®. This approach helps to reduce the dropout rate of the conventional specific health guidance program.

 

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The Program provides support to medical professionals, such as public health nurses, dietitians, etc., that assist eligible individuals (age between 40 and 74) who are at risk of developing lifestyle-related diseases that can be caused by an unbalanced diet, lack of sleep, lack of exercise, smoking, stress, and other factors, by reviewing their lifestyle habits through specific health checkups that focus on metabolic syndrome. The implementation of specific health checkups and specific health guidance has become mandatory for medical insurers, including the national health insurance and the employee’s health insurance, since April 2008.

 

The Ministry of Health, Labor and Welfare has set a nationwide target of at least 70% for specific medical checkup implementation rates and at least 45% for specific health guidance implementation rates. In fiscal year 2021, however, the medical checkup implementation rates and specific health guidance implementation rates were only 56.5% and 24.6%, respectively. As a result, the market for these services is expected to expand due to the government’s effort to achieve the set target implementation rates. According to a survey by the Japan Health Guidance Association, the utilization of Information and Communication Technology (ICT) has been increasing, and the adoption rate has exceeded 50% due to the impact of COVID-19 in recent years.

 

As of October 2023, the Company has entered into contracts with 71 corporate insurance associations, and the cumulative number of users of our Lav® app has exceeded 6,000 people, bringing the total to 6,006 individuals.

 

   Number of New
Contracts with
Corporate
Insurance
Associations(*1)		  Number of Users(*2)  Cumulative Number of
Contracts with
Corporate Insurance
Associations		  Cumulative Number of
Users		 
October-22  4  186  62   3,610 
November-22  1  241  63   3,851 
December-22  1  183  64   4,034 
January-23  2  177  66   4,211 
February-23  0  188  66   4,399 
March-23  0  220  66   4,619 
April-23  1  295  67   4,914 
May-23  1  158  68   5,072 
June-23  1  199  69   5,271 
July-23  0  163  69   5,434 
August-23  0  100  69   5,534 
September-23  2  179  71   5,713 
October-23  0  293  71   6,006 

 

(*1) Number of new contracts with corporate insurance associations entered into in the month to implement specified health guidance program offered by us.

(*2) Number of new users that started using specified health guidance offered by us in the month.

 

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Forward-Looking Statements

 

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about the Company’s possible or assumed operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “design,” “target,” “aim,” “hope,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “project,” “potential,” “goal,” or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could, and likely will, affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ from those anticipated in these forward-looking statements, even if new information becomes available in the future.

 

About MEDIROM Healthcare Technologies Inc.

 

MEDIROM, a holistic healthcare company, operates 315 (as of October 31, 2023) relaxation salons across Japan, Re.Ra.Ku®, being its leading brand, and provides healthcare services. In 2015, MEDIROM entered the health tech business, and launched new healthcare programs using on-demand training app called “Lav®”, which is developed by the Company. MEDIROM also entered the device business in 2020 and has developed a smart tracker “MOTHER Bracelet®”. MEDIROM started selling “MOTHER Bracelet®” to individual customers in 2021, and has already received orders from corporate clients. MEDIROM hopes that its diverse health related services and products offering will help it collect and manage healthcare data from users and customers and enable it to become a leader in big data in the healthcare industry. For more information, visit https://medirom.co.jp/en.

 

■Contacts

Investor Relations Team

ir@medirom.co.jp

 

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