Shiseido Tallies Its Loses and Its Blessing

Shiseido executives estimate that the 200 to 300 stores destroyed by last month’s tsunami comprise no more than about 1% of Shiseido’s total sales points in Japan. Still, the disaster will translate into 3 billion yen, or $35.7 million, in lost sales and 1.5 billion yen, or $17.9 million, in extraordinary losses for the company for the fiscal year concluded March 31, 2011.


The company will announce results next month, but sales are now seen coming in at 670 billion yen, or $7.97 billion, from a previous target of 680 billion yen, or $8.09 billion. It marks the second time in four months that Shiseido has cut its earning and sales forecasts as conditions in its home market of Japan continue to deteriorate and consumers spend less on beauty products.


Following the disaster, Shiseido made a monetary donation and shipped soap, disinfectant and dry shampoo to displaced victims of the tsunami. More products are on their way. Shiseido is preparing some 30,000 kits of lotion, lipstick samples, foundation, mirrors and other items.