With the acquisition of Bare Escentuals driving first-half profit down 58% Shiseido Co. Ltd. slashed its full-year profit forecasts. For the six months ending 30 September 2010. Shiseido’s net profit decreased 57.6% to 7.54 billion yen with operating profits also decreasing 3.9% to 21.85 billion yen. Global sales in the first-half for Shiseido increased 5.2% to 333.63 billion yen except in Japan where sales decreased 4.3% to 198.9 billion yen, where the recovery is still slow and lagging behind the rest of the world economies. Outside of Japan sales increased 23% to 134.7 billion yen. Shiseido revised full-year profit forecasts to 25 billion yen, a decrease from their previous forecast of 31 billion yen and a 25.8% drop from their 2009 profits. Shiseido also revised their full-year sales forecast from 660 billion yen to 688 billion yen, a 6.7% increase from 2009.
As cosmetics markets like apparel markets recover globally - except for Japan - expect more companies to reforecast profits and sales in the Japan market.