Japan's Shiseido says annual profit plunges 73 percent amid sluggish sales in China

People walk past a booth of Japanese cosmetic brand Shiseido at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. REUTERS
People walk past a booth of Japanese cosmetic brand Shiseido at the third China International Consumer Products Expo, in Haikou, Hainan province, China April 11, 2023. REUTERS

Shiseido said its operating profit came in at 7.58 billion yen (HK$387.35 million) in the 12-month period ended December 31, compared with 28.13 billion yen the prior year.


A retailer of high-end personal goods, Shiseido is seen as a barometer for consumer confidence in China, a market the company and its peers have come to rely on for sales growth.


"China's cosmetics market suffered a prolonged downturn, weighed down by a decline in consumer spending and rising household savings amid worsening economic sentiment," the Japanese company said in a statement.


Shiseido said its China sales were down 4.6 percent year-on-year on a like-for-like basis, excluding the impact of foreign exchange and business transfers, and also forecast a sales decline in 2025.