Japanese beauty house Shiseido posted an -8% decline (reported, -6% like-for-like) in H1 sales year-on-year to ¥469.8 billion, dragged down by the newly combined China & Travel Retail division and a weak showing by Drunk Elephant.
However, groupwide core operating profit moved from a ¥2.7 billion loss to an ¥18.1 billion surplus, based on what the company called “steady execution of Action Plan 2025-2026”, involving accelerated fixed cost reductions to achieve sustainable profitable growth amid market volatility.
Shiseido said China & Travel Retail, now joined as a division, had “bottomed out”, displaying resilient margins amid declining sales.
[Note: To adopt an integrated approach to Chinese consumers and to maximise value creation, the company implemented changes to its organisational structure as of 31 March 2025, along with change to its reportable segment which have been reflected in 2025.]
Combined China & Travel Retail sales declined -14% year-on-year in Q1 and -7% in Q2, producing H1 revenue down -10%.
However, in pure travel retail, Chinese tourist consumption remained “stagnant”. South Korea saw an “ongoing shift to a tourist-driven model” (i.e. genuine shoppers v resellers), while Japan decelerated. Q2 travel retail sales were down in the low -20% range.
For the full year, Shiseido is anticipating a mid-single percentage sales decline year-on year for China & Travel Retail. “Weak consumption, heightened uncertainty, fierce price competition in the market to continue, but likely to maintain a better foothold than expected overall,” the group said. ✈
