TOKYO — Shiseido Co. Ltd. said Thursday that it posted a first-quarter loss of 1.78 billion yen, or $17.43 million at average exchange rates, on increased tax and personnel expenses.
The company’s operating profit plummeted 80.2 percent to 1.36 billion yen, or $13.33 million for the three months ended June 30. Shiseido said higher personnel expenses stemming from bonus payments bit into its profitability.
Japan’s largest cosmetics company saw its first-quarter sales rise 3.7 percent to 168.38 billion yen, or $1.65 billion.
First-quarter sales from the company’s Global Business unit grew 9.8 percent but lost 1.8 percent in local currency terms. Shiseido said it posted growth in its Chinese business and the Aupres brand performed well. As for the Americas and Europe, the company said Nars sold well but sales of fragrances and bareMinerals products declined.
Shiseido said first-quarter sales at its Japanese cosmetics business lost 3.3 percent. The company said consumers pulled back after April’s sales tax hike, but demand “appears to be recovering with each passing month.”
Since appointing Masahiko Uotani as chief executive officer earlier this year, Shiseido is undertaking major changes in its strategy. This new plan is set to start in the company’s next fiscal period, and will include organizational, operational and marketing reforms.
Shiseido left unchanged its guidance for the 12 months ending Mar. 31, 2015. It expects net income to jump 45.3 percent to 38 billion yen, or $371.15 million at current exchange rates.
The company is predicting that operating income will fall 15.4 percent to 42 billion yen, or $410.22 million.
It forecasts yearly sales growth of 2.4 percent, totaling 780 billion yen, or $7.62 billion.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews