TOKYO — Shiseido Co., Ltd. narrowed its losses in the firstquarter as it warned that its first-half net profit will come in lowerthan originally forecast due to tax expenses.
The Japanesebeauty company said Friday that net losses for the three months endedJune 30 came in at 277 million yen, or $3.4 million, compared to ayear-earlier loss of 666 million yen, or $7.2 million. All dollars areconverted from the yen at average exchange rates for the period to whichthey refer.
Sales for the period grew 7.9 percent to 157.29billion yen, or $1.93 billion. Once again, the company’s internationalbusiness outperformed its domestic one. International revenue grew 15.8percent to 67.7 billion, or $829.3 million, while that in Japan advanced2.6 percent to 89.6 billion yen, or $1.1 billion.
First-quarteroperating profit more than doubled to 9.06 billion yen, or $111million.
Shiseido said the March 11 earthquake and the ensuingproblems at the Fukushima nuclear plant hampered business in its homemarket of Japan but its distribution operations resumed their normalactivity as early as April.
The cosmetics market in westerncountries maintained a “recovery tone” and sales in China and otheremerging markets continued to climb.
Carsten Fischer, Shiseido’scorporate senior executive officer responsible for internationalbusiness, has spearheaded the company’s global push, particularly inChina and in the U.S. through the acquisition of Bare Escentuals. He isalso shaping up to be one of the best-paid executives in Japan. Fischermade 443 million yen, or $5.2 million, for the fiscal year ended March31 in terms of his salary, bonuses and stock options, according toShiseido’s recently released annual report. He took home 141 millionyen, or $1.52 million, the previous year.
The company trimmedits net profit forecast for the six months ending Sept. 30, stating thatits tax expenses will be higher than originally expected. It now seesits first-half net profit coming in at 7 billion yen, or $89.9 million,compared to an earlier forecast of 10 billion yen, or $128.5 million. Italso raised its sales forecast to 336 billion yen, or $4.32 billion,from 334 billion yen, or $4.29 billion, citing the depreciation of theyen against the company’s expectations.
Shiseido left itsfull-year forecasts untouched. It said it expects net profit to grow64.2 percent to 21 billion yen, or $269.8 million, and net sales toadvance 1.4 percent to 680 billion yen, or $8.74 billion.
"'Dynasty' is all about gowns, the diamonds and the scandal, so it's a bit like the fashion industry. When we come to Cannes it's all about the red carpet dresses too, so it all fit really well," said designer @philippplein78 on the theme of his high-glamour resort 2019 show at his mansion in Cannes. #wwdfashion #cannes (📷: @zefashioninsider)
"I think Spike is such a brilliant director because he holds up a mirror to society and reflects these issues, yet he doesn't shove it down your throat, he doesn't tell you what to think," says @lauraharrier on her latest film @Blackkklansman. Harrier was at the Cannes Film Festival – for the very first time – with @officialspikelee. #wwdeye #cannes (📷: @zefashioninsider)
“I would think to myself, Are you happy? Yes, I’m wildly happy. I go to this studio every day and, in my inside voices, I’m giggling; I’m singing. Yes, it’s a lot of work, it’s a [huge] volume of material. It wouldn’t be for everybody. But I was very happy,” said soap opera star @therealsusanlucci of checking in throughout the years with her career trajectory. Lucci spoke to WWD about her decades-long career, love for pilates, motherhood and her QVC activewear line. Read Bridget Foley’s full piece on Lucci on WWD.com #wwdfashion (📷: @celestesloman)
@balmain has taken a stand at the #cannes Film Festival, dressing 16 actresses at a press call for the project “Noire N’est Pas Mon Metier,” or “Black Is Not My Profession.” The multimedia project includes a book, photo exhibit and documentary, which aims to expose discrimination in the French and American entertainment industries. “The moment I was asked to participate, I knew it was right for me, and for this brand, to form a part of this moment,” Balmain creative director @olivier_rousteing told WWD. #wwdnews #wwdfashion
"I always feel curious and I feel like there's more to learn. But I think being relevant, feeling relevant, I personally always feel that there's just so much more to know. And maybe that's the key.” — @themarcjacobs #wwdsummits #wwdbeauty (📷: @patrickmacleodphoto )
“The most amazing thing about her is that, regardless of all the things that have happened to her, her spirit is so undaunted by all of it. She is the most cheerful person you will ever meet. She doesn’t see problems, she only sees solutions,” said @ajanaomi_king of activist Ifrah Ahmed, who she plays in a new film “A Girl from Mogadishu.” WWD caught up with King at Cannes — Head to WWD.com to read more about her new role, personal style and how she uses social media for causes like Time’s Up and Black Lives Matter #wwdeye
WWD asked a number designers to share their thoughts on what Meghan Markle’s wedding gown will look like this Saturday. Here, Valentino’s Pierpaolo Piccioli sketches his look. #wwdfashion #royalwedding #meghanmarkle