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.
The company reported a long-awaited lift in net sales in its third quarter results, with increases from skincare leading the way, but clouds persist over its China recovery.
As awareness grows about the perils of sleep deprivation, beauty and wellness brands are flooding the market with an array of products to cash in on the booming opportunity.
Going public is usually a pivotal moment in a company’s history, cementing its heavyweight status and setting it up for expansion. In L’Occitane’s case, delisting might be a bigger conduit for growth.
Brands say they’re barreling ahead with marketing and commerce on the app, even as the clock starts ticking for owner ByteDance to sell it or shut it down.