Shiseido Reports 90% H1 Core Profit Surge to ¥44.4bn
Japanese beauty firm Shiseido recorded a significant rise in core operating profit for the first half of the year, reaching ¥44.4 billion. This growth occurred despite flat net sales, driven by strong performance in Asia Pacific and fragrance, even as some brands faced market challenges.
Financial Performance and Regional Overview
Shiseido, the Japanese beauty firm, reported a 90% increase in core operating profit for the first half of the year, reaching ¥44.4 billion. Net sales for the six months ending June 2026 stood at ¥499 billion, remaining flat on a like-for-like basis. Organic revenue showed growth during the second quarter.
Asia Pacific was Shiseido's strongest performing region, achieving 2% growth in the first half. Conversely, sales in Japan and China, including travel retail, did not change. The Americas and EMEA regions saw a 1% decline in sales, attributed to increased competition and difficulties with specific brands.
Shiseido states it is making steady progress towards profitability in the Americas for 2026, improving upon a 9.5% decline in that region during 2025.
Brand Performance and Market Challenges
Within Shiseido's portfolio, core brands NARS Cosmetics and Cle de Peau de Beauté demonstrated growth in the first half of the year. NARS Cosmetics grew by 3%, while Cle de Peau de Beauté increased by 2%, with its growth accelerating to 6% in the second quarter. The Shiseido brand, however, experienced a 3% decline.
The launch of NARS' Natural Matte Longwear Foundation did not meet internal expectations, primarily due to performance in the United States market. Skin care brand Elixir grew 7%, and the emerging Baume line expanded by 3%. Drunk Elephant sales decreased by 12% in the first half and 9% in the second quarter, which the company noted as a slight improvement.
Growth Drivers and Future Initiatives
Fragrance sales accelerated significantly in the second quarter, rising 12%. This growth stems from the expansion of Shiseido's fragrance portfolio, which includes brands like Narciso Rodriguez and Issey Miyake.
The company expects continued momentum in the second half of the year from new launches, such as Italian fashion house Max Mara's inaugural scent, and the broader geographic rollout of Zadig and Voltaire fragrances.
For Drunk Elephant, Shiseido plans to introduce Kamo Drops, the brand's first entry into complexion products, during the second half of the year as part of its strategy to revitalize the brand's performance.
Implications for Asia's Beauty Economy
Shiseido's varied regional and brand performance highlights the complex market dynamics currently affecting global beauty players. For Asian beauty brands, the flat sales in Japan and China, alongside declines in the Americas and EMEA for some Shiseido brands, suggest sustained competitive pressure in mature markets.
The strong growth in Asia Pacific for Shiseido, however, reveals opportunities for brands with localized strategies and effective portfolio management.
The planned turnaround for Drunk Elephant, including its first complexion product launch, indicates efforts to adapt to evolving consumer preferences and competitive landscapes, a critical consideration for any brand looking to maintain relevance in key Asian markets.
Three newsletters, one newsroom.
The Beauty Brief delivers Asia's beauty week every Monday. Regulatory Radar tracks the rule changes that move markets. Trend Pulse decodes what consumers want next. All free to start.
