Shiseido's profits grow despite sales stagnating. The Japanese company has announced that it has raised its operating profit by more than 57% in the first quarter of 2026 to 79.5 million euros and this helps it maintain its forecasts for 2026.
Last August, Shiseido announced a restructuring plan that entailed the cut of 300 positions, which is equivalent to more than 15% of its current workforce. This situation, according to the company, was due to the strong setback of Drunk Elephant, which is an American brand that was acquired by Shiseido in 2019 and that suffered a considerable decline in demand.
Shiseido has reported sales amounting to 1,416 million euros, which represents a 3% increase compared to the first quarter of the previous year. The company attributed the setback to inventory adjustments, changes in campaign calendar, and the weakening of the business linked to Chinese tourism.
Regarding the markets, Shiseido has been penalized in Japan, where it has reduced its sales by 4% penalized by the fall in tourist consumption due to the decrease in Chinese visitors. In China, it has also fallen by 1.4% despite the company wanting to highlight the increase in NARS and Clé de Peau Beauté.
The Japanese group announced in February that this 2026 its main objective is to recover profitability and raise sales up to 5,823 million euros. In 2025 the group closed with losses before taxes for an amount of almost 164 million euros.
Shiseido's plan for 2026 is to strengthen the brand base, rebuild a profitable structure, and elevate execution discipline.