Shiseido reported a 3% decline in net sales to ¥232 billion in the first quarter of 2026, while operating profit rose 58% year on year to ¥13 billion. The company said performance was affected by continued tensions between Japan and China, inventory adjustments, and timing shifts across several brands.
Brand Results Were Mixed
By brand, Shiseido sales fell 4% and Clé de Peau dropped 2%, while NARS rose 7% and Elixir increased 4%. Anessa fell 17%, Dr. Dennis Gross declined 6%, and Drunk Elephant rose 1%.
The quarter therefore showed a split picture inside the portfolio. Some global and domestic labels continued to grow, but that strength was not broad enough to offset weakness elsewhere.
Costs and Supply Risks Remain in Focus
Shiseido also said it is monitoring risks tied to the Middle East conflict, including higher raw material and logistics costs, supply chain disruption, and possible production delays. The company added that it is assessing selective price increases and announced plans to streamline its production network, including the closure of its Hsinchu factory in Taiwan, Shiseido.
For the market, the quarter points less to a uniform slowdown than to a more uneven operating environment in which brand resilience, regional exposure, and cost discipline are becoming more important.
