Net sales for the six months dropped 7.6% to ¥469 billion (£2.3 billion), largely due to continued weakness in the China and Travel Retail segments, where "subdued consumer spending and deteriorating economic sentiment weighed heavily".
The Americas and EMEA businesses continued to face headwinds amid slower-than-expected growth in the cosmetics market. Both regions were also impacted by challenges with the Drunk Elephant brand. As a result, net sales declined year-on-year by 10.1% in the Americas and 5.3% in EMEA.
The company was also impacted by rising uncertainty stemming from escalating geopolitical tensions, a slowdown in global economic growth, and concerns surrounding US tariff policies.
Despite this, core operating profit increased 21.3%, supported by structural reforms in Japan and effective cost management across global operations.
As part of its medium-term strategy, SHIFT 2025 and Beyond, the company aims to achieve a 3% global cost reduction while restructuring its organisation to maximise gross profit.
In addition, Shiseido has launched Action Plan 2025-2026, a two-year initiative designed to accelerate profitability recovery and lay the foundation for sustainable growth.
Through this Action Plan, the business is focused on reinforcing its brand foundation, rebuilding a profitable business base, and enhancing operational governance to "create a resilient business model capable of delivering sustained profit growth amid volatile market conditions".
In the first year of the plan, key priority actions are underway to achieve a core operating profit margin of 7% by 2026.
