THE WHAT? Shiseido has reported lower-than-expected net sales for the third quarter of the current financial year, and cut its sales forecast for the full year accordingly.
THE DETAILS The J-beauty giant said that it expected the ‘delay in market recovery’ to continue in the fourth quarter of the year and was therefore predicting sales of ¥915,000 million, versus the ¥953,000 previously forecast, itself a sharp drop on the sales of ¥1, 131547 million recorded in the 12 months ended December 31, 2019.
Shiseido is expecting sales to plummet in every region bar China, where is forecasting an 8 percent rise in sales. Its largest market, Japan, is predicted to register a 30 percent drop.
THE WHY? Shiseido said that consumer sentiment in Japan has been weaker than expected, while in Europe and the United States, COVID-19 cases have been on the rise, with restrictions on movement and other measures being strengthened.