Shiseido, the renowned Japanese cosmetics company, has announced a remarkable 14% increase in net sales for the nine-month period that ended on September 30. This impressive growth can be attributed to the thriving markets in the Americas, EMEA (Europe, the Middle East, and Africa), and travel retail sectors. These sectors managed to counterbalance the weak performance experienced in Japan and China, both heavily impacted by the spread of new Covid-19 variants and inclement weather conditions.

The global economy has faced considerable challenges as a result of the ongoing Covid-19 pandemic. With limited economic activity and low consumer confidence stemming from declining corporate earnings and employment rates, various industries have struggled. In Japan, the cosmetics market witnessed a decline in consumer traffic due to stay-at-home measures and restricted retail operating hours implemented during the state of emergency. Moreover, the decrease in inbound tourists to Japan also affected the demand for cosmetics. However, as the vaccination campaigns progressed, there was a notable recovery in the cosmetics sector worldwide, particularly in makeup, which had previously faced difficulties in Europe and the United States.

Despite the testing conditions, Shiseido managed to achieve a net profit of 36.76 billion yen, almost tripling its operating profit compared to the same period last year, which amounted to 8.91 billion yen. However, the company experienced a decline in sales in Japan of 7.3% year on year, reaching 210.3 billion yen. Nevertheless, Shiseido successfully invested in the skin beauty category to meet evolving consumer demands, gaining market share in base makeup and sun care. Nonetheless, the recovery from the impact of the Covid-19 pandemic has been notably slow.

Conversely, the Americas region saw a substantial annual sales increase of 36.3% year on year, amounting to 89.8 billion yen. This growth can be primarily attributed to the positive impact of vaccination rollouts on the recovery of the cosmetics market, particularly in makeup. On the other hand, Shiseido faced challenges in China, as partial retail closures and reduced consumer footfall caused by heavy rains and new Covid-19 variants hindered business. Nonetheless, strong e-commerce sales performance contributed to a net sales increase of 23.1% to 190.9 billion yen. In the EMEA region, sales reached 79.5 billion yen, reflecting a year-on-year increase of 31.9%. In the Asia Pacific region, sales climbed by 11% to 48.1 billion yen.

Moving forward, Shiseido has adjusted its guidance for the fiscal year ending on December 31. The company has revised its forecasts for net profit and net sales, with a lowered net profit expectation of 30 billion yen, down from the earlier forecast of 35.5 billion yen. Furthermore, Shiseido predicts yearly sales to amount to 1,044 trillion yen, reflecting a 13.4% year-over-year growth rate. Shiseido is determined to navigate the challenges posed by the ongoing pandemic and adapt its strategies to meet the evolving needs of consumers in different regions.

For more information on Shiseido’s performance, you can visit their official website here. Additionally, if you would like to gain further insight into the cosmetics industry during the pandemic, please refer to this interesting article here.