The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The beauty company reported on Friday that full-year sales grew by 5.7 percent for the fiscal year ended Dec. 31, to approximately 1.07 trillion yen, or $8.1 billion. Net profit dropped by 27.1 percent to 34.2 billion yen, or $260.6 million. Operating profit for the year was down by 53.7 percent.
Shiseido also announced a new growth strategy for 2023-2025 called “Shift 2025 and Beyond.” This follows a previous plan called “Win 2023 and Beyond,” which was first announced in 2021. Within its updated strategy, Shiseido hopes to regain growth of its Japanese business, which was not achieved during the prior business plan. Shiseido says it will prioritise brand, innovation and people to achieve a core operating margin of 12% by 2025 and 15% in 2027. The company’s hero lines Shiseido and Cle de Eau Beauté, as well as fragrances, will be used as growth drivers.
For its current fiscal year, Shiseido expects net profit to decrease by 18.1 percent to 28 billion yen and predicting net sales will fall to 6.3 percent to 1 trillion yen.
Excitement for its IPO is building, but in order to realise its ambitions, more acquisitions and operational expenses might be required.
In an increasingly crowded space, makeup brands that prioritise natural ingredients are finding new ways to get their message across.
Shana Randhava, Priya Venkatesh, Heela Yang and Robin Tsai will join Imran Amed and Priya Rao to identify the entrepreneurs shaping the future of the beauty industry.
By selling existing formulas under their own name, retailers can tap into the lucrative beauty market without investing in custom formulations. But that doesn’t mean the private label model is an easy win.