TOKYO — Consumer goods company Kao Corp. said Tuesday that its net profit for the six months ended September 30 rose 10.3 percent to 27.84 billion yen, or $332.1 million at an exchange rate provided by the company.
Operating profit jumped 27 percent to 57.87 billion yen, or $690.4 million, due to cost reduction activities, the rebuilding of Kao’s cosmetics business, and more efficient use of advertising expenses, the company said. Kao said deferred income taxes further boosted its bottom line.
Net sales for the period inched up 0.4 percent to 601.35 billion yen, or $7.17 billion.
Kao’s beauty care segment posted an operating income of 5.2 billion yen, or $62.6 million. Sales for the division, which includes Kanebo and Bioré, totaled 272.5 billion yen, or $3.25 billion. This is down 1.1 percent from the same period last year.
The company blamed the drop in sales to a contraction in the market in Japan, noting a shift in consumer preference to lower priced products. “Sales of prestige cosmetics, which consist of self-selection and counseling cosmetics, decreased…due to an ongoing downtrend with the continuing impact of the consumer preference for lower priced products, despite an emerging sense that Japan’s cosmetics market is bottoming out,” the company said in a release.
Kao also revised its guidance for the full year ending March 31, 2011. Net profit is now seen as coming in at 53 billion yen, or $632.3 million, up 30.8 percent from last year. This is an increase from an earlier forecast of 50 billion yen, or $537.4 million.
However, the company reduced its sales guidance to 1.185 trillion yen, or $14.14 billion, down from a previous forecast of 1.195 trillion yen, or $12.84 billion. The new sales figure represents an increase of 0.9 percent over last year.
Breaking: @cushnieetochs’ co-founders @carlycushnie and @ochsmichelle are parting ways. After a 10-year run, Ochs is leaving the brand. Get the full story on WWD.com – link in bio. #wwdnews #wwdfashion
@maybelline’s Kanako Takase had snow bunnies in mind when creating the beauty look for @philipppleininternational. Playing off of the bedazzled snowboards in the collection, Takase mixed two highlighters together for a luminous sheen. #wwdbeauty #nyfw (📷: @jilliansollazzo)
“There’s a huge gap between the old way of doing things and today. It takes the youth to help evolve that. You have to count on the kids today to help lead you into the future. A lot of these retailers are stuck in the past. Communication is the biggest thing,” said @ronniefieg of @kith on the youth’s role in retail. On Monday night, Jeff Staple moderated a keynote session with Fieg and @syresmith at Assembly - a series of workshops, talks and keynotes addressing topics or issues in the apparel industry. Head to WWD.com to read more advice from Fieg and what Smith thinks of his dad @willsmith’s Instagram account and sustainability (📷: @weston.wells)
@joansmalls closed the @michaelkors fall 2018 show in black sequined pants and a varsity T printed with 19 on the front and 81 on the back. 1981 – the year Kors went into business. #wwdfashion #nfyw (📷: @giovanni_giannoni_photo)
“You think your life is going to be a certain way, and nothing you thought would happen ends up happening. Never in my wildest dreams did I think I’d be designing clothes and working with Mickey Drexler, and building something I’m deeply proud of,” said Jenna Lyons. Nine months after leaving @jcrew, Lyons is exploring the meaning of happiness. Read the interview, where Lyons talks about reinvention and more on WWD.com – link in bio. #wwdfashion (📷: Farrell) #jennalyons #jcrew