Shiseido Sets Records for Sales, Earnings in First Half
TOKYO — Shiseido Group announced record sales and net profits for the first half, attributing the results to strong marketing and restructuring initiatives.

On a consolidated basis, net profits skyrocketed 115.3 percent to 10.3 billion yen, or $93.3 million at average exchange, for the half ended Sept. 30, compared with the year-ago period.

"Despite reporting an extraordinary loss related to the mandatory introduction of impairment accounting, interim net income jumped," the Japanese cosmetics giant stated.

Sales were up 4.6 percent to 330.5 billion yen, or $3 billion, over last year. Meanwhile, domestic sales were up 2.5 percent and overseas sales, which made up 27.6 percent of the total business, grew 10.4 percent. Sales from cosmetics, which made up 78.8 percent of total sales, increased 4.3 percent. Domestic sales of cosmetics rose 1.5 percent.

As for overseas cosmetics, sales grew 10 percent in local currencies and 11.3 percent on a yen-denominated basis. During the period, Shiseido's cosmetics business benefited from increased sales in all regions, led by China. "Sales of our mainstay Shiseido brand were solid, as were fragrances sold by Beauté Prestige International S.A., together with non-Shiseido brands, notably Nars and Decléor," said the group.

Sales in China, including Hong Kong, rose 36 percent in local currencies and 33 percent on a yen basis. In China, Shiseido's products were carried in 777 specialty stores at the end of September, a number the company projects to reach 1,000, by yearend. Sales in Asia and Oceania jumped 18.4 percent in local currencies and 19.7 percent on a yen basis to 31.4 billion yen, or $284.5 million.

Sales in Europe were up 4.1 percent in local currencies and 6.2 percent on a yen basis to 37.7 billion yen, or $341.6 million. In the Americas, including the U.S., Canada and Brazil, sales increased 7.2 percent in local currencies and 5.7 percent on a yen basis to 22.3 billion yen, or $202 million, compared with the same period a year earlier.
— Koji Hirano

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