Shiseido Reports Severe Drop in First Quarter Profits
Shiseido reported
a dismal first quarter drop in profits of 57.8%. Women just aren't buying cosmetics like they used to.
Net profit fell 57.8 percent to 4.32 billion yen, or $44.40 million at average exchange rates for the period, for the three months ended June 30. Sales declined 14.9 percent to 139.69 billion yen, or $1.43 billion.
"In the first quarter under review…consumer sentiment continued to weaken, causing market conditions in the domestic cosmetics industry to remain difficult," the company said Thursday in a release. "Overseas, the cosmetic markets in Europe and the Americas were affected by the economic recession, resulting in weak conditions overall."
The company's operating profits declined a whopping 82.8% to $21.67 million.
The company's report was pretty dismal, with executives cutting their profit targets for the rest of the year.
