02.01.10
The economic slowdown in Japan put a damper on sales at three major beauty companies in Japan: Shiseido, Kao and Kosé.
Shiseido’s profit for the period ended Dec. 31 increased 11.2% to 253.6 million at average exchange rates, thanks to a lower tax rate. However, sales slumped 10.4% to $4.97 billion.
The cosmetics and beauty giant’s operating profit slid 12.6% to $348.8 million.
“In the first three quarters under review, both Japan and overseas nations faced continued economic stagnation, while conditions surrounding the consumer goods market remained difficult,” said the company, which has launched a $1.7 billion bid for Bare Escentuals. In terms of its cosmetics business, Shiseido reported a year-on-year sales increase in the Asia-Oceania region, with particular strength in China, on a local currency basis. But total sales in the overseas cosmetics business fell 0.9% on a local currency basis and 15.8% after translation into yen.
In China, Shiseido “focused on expanding our network of cosmetics specialty stores and strove to attract new types of customers by strengthening our makeup line,” the company said. In the Americas and Europe, Shiseido renewed the global Shiseido brand, which led to a sales turnaround in the third quarter, and the percentage of the sales decline in those regions diminished on a local-currency basis.
Meanwhile, at Kao, profits and sales dropped for the nine months ended Dec. 31. Net income dropped 17.6% to$478.3 million, while operating profit dropped 7.2% to $907.4 million. Sales dropped 9.3% to $9.74 billion.
Sales of its beauty care division for the nine months dropped 4.4% to$44.9 million.
At Kosé, Japan’s third-largest cosmetics company, weak consumer demand and a strong yen bit into results for the first nine months of the year, the firm said Friday.
Kosé said net profit for the nine months ending Dec. 31 slid 9.9% to $33.8 million. Sales decreased 3.5% to $1.4 billion.
Looking ahead, Kosé executives predicted net profit will fall 26.2% to $38.8 million, while sales will drop .2% $1.95 billion for the year ended March 31, 2010.
Shiseido’s profit for the period ended Dec. 31 increased 11.2% to 253.6 million at average exchange rates, thanks to a lower tax rate. However, sales slumped 10.4% to $4.97 billion.
The cosmetics and beauty giant’s operating profit slid 12.6% to $348.8 million.
“In the first three quarters under review, both Japan and overseas nations faced continued economic stagnation, while conditions surrounding the consumer goods market remained difficult,” said the company, which has launched a $1.7 billion bid for Bare Escentuals. In terms of its cosmetics business, Shiseido reported a year-on-year sales increase in the Asia-Oceania region, with particular strength in China, on a local currency basis. But total sales in the overseas cosmetics business fell 0.9% on a local currency basis and 15.8% after translation into yen.
In China, Shiseido “focused on expanding our network of cosmetics specialty stores and strove to attract new types of customers by strengthening our makeup line,” the company said. In the Americas and Europe, Shiseido renewed the global Shiseido brand, which led to a sales turnaround in the third quarter, and the percentage of the sales decline in those regions diminished on a local-currency basis.
Meanwhile, at Kao, profits and sales dropped for the nine months ended Dec. 31. Net income dropped 17.6% to$478.3 million, while operating profit dropped 7.2% to $907.4 million. Sales dropped 9.3% to $9.74 billion.
Sales of its beauty care division for the nine months dropped 4.4% to$44.9 million.
At Kosé, Japan’s third-largest cosmetics company, weak consumer demand and a strong yen bit into results for the first nine months of the year, the firm said Friday.
Kosé said net profit for the nine months ending Dec. 31 slid 9.9% to $33.8 million. Sales decreased 3.5% to $1.4 billion.
Looking ahead, Kosé executives predicted net profit will fall 26.2% to $38.8 million, while sales will drop .2% $1.95 billion for the year ended March 31, 2010.