With the exception of its home market, where sales and operating profit dropped 12.1 percent and 37 percent respectively compared to 2020′s first quarter, the group saw increased sales across its global markets and China in particular, where sales surged 41.1 percent year-on-year.
Sales were up 7.5 percent year-on-year and totalled 244.01 billion yen (around $2.2 billion). The company said its 14 million net loss was mainly due to the partial termination of its deal with Dolce and Gabbana. The company raised its full-year profit forecast from 11.5 billion yen (around $105 million) to 35.5 billion yen ($324 million) and lowered its sales and operating forecasts.
In Japan, where the government yesterday extended a state of emergency ending May 31 to six prefectures and many large-scale department stores have been urged to close, the prospect of recovery remains uncertain. Meanwhile, China is driving growth: the market, which made up 19.6 percent of Shiseido’s global sales in Q1 2020, now accounts for 26.8 percent of the pie, catching up to the 30.8 percent of sales being generated by its domestic business.