Kose Corp slashes sales and earnings outlook as coronavirus bites

Kose Corp slashes sales and earnings outlook as coronavirus bites

THE WHAT? Kose Corporation has revised its sales and earnings forecasts downwards in the wake of the coronavirus outbreak.

THE DETAILS The Japanese personal care giant’s original forecast, posted on April 26, 2019 for the fiscal year ending March 31, 2020, predicted sales of ¥352,000 million and an operating profit of ¥54,000 million. Now, however, those figures have been adjusted to ¥336,000 million and ¥45,000 million respectively.

By business segment, Kose has shaved some ¥15,800 from its cosmetics sales forecast (5.8 percent) and ¥200 million (0.3 percent) from its cosmetaries unit.

THE WHY? Kose said in a statement that, although sales in Asia remained strong, the end of the upturn in sales prior to Japan’s October, 2019 consumption tax hike, the impact on the duty-free stores channel from declining inbound tourist numbers caused by the spread of the coronavirus epidemic in China and the effect of yen’s appreciation has negatively affected sales.

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