Shiseido Posts Loss in Fiscal Q1

Weak results at home forced Shiseido to post a a first-quarter loss on declining sales. Japan’s largest beauty company lost 1.27 billion yen, or $15.9 million, at average exchange rates for the three months ended June 30. That compares to a loss of 277 million yen, or $3.4 million, at exchange rates for that period a year ago.

The company attributed the loss to declining sales as well as increased marketing expenses, particularly for international markets.

Shiseido’s operating loss was 3.02 billion yen, or $37.7 million, which compares with an operating profit of 9.06 billion yen, or $111.4 million, the year before.

Shiseido’s net sales for the quarter declined 5% compared with the same period last year, totaling 149.45 billion yen, or $1.87 billion.

Particularly hard hit were sales in the company’s home market of Japan, where cosmetics sales dropped 9.6% on the year to 75.51 billion yen, or $942.4 million. Shiseido blamed the drop on a high comparative base when there was a spike in sales immediately after last year’s earthquake.