THE WHAT? Shiseido saw Chinese sales fall 55 percent during the Lunar New Year holiday compared to the same period last year, according to a report published by the Japan Times.
THE DETAILS The Japanese cosmetics major attributed the drop to the coronavirus outbreak, which also saw tourist arrivals to Japan fall significantly causing sales to foreigners to dip 40 percent over the break, according to the Japan Times, quoting Masahiko Uotani, Shiseido President.
“We haven’t projected the effect on earnings as we don’t know how big a blow the virus will deal to our businesses,” he said. “We hope to give a clear projection when we report midterm earnings.
THE WHY? It’s too soon for Shiseido to put a number on the impact of the coronavirus outbreak. However, Uotani revealed that, in putting together its midterm earnings report, it was banking on the spread of the illness petering out by the second half of the financial year.