Shiseido Company, Limited
4911・Prime Market・Chemicals
Japan Business
Shiseido's core domestic segment overseeing the cosmetics and healthcare businesses in Japan
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) | ¥71,218 million (Q1 FY2026, ending March 2026) | ¥74,186 million (Q1 FY2025, ending March 2025) | ↓ |
| Core Operating Income | ¥10,418 million (Q1 FY2026, ending March 2026) | ¥11,342 million (Q1 FY2025, ending March 2025) | ↓ |
| Core Operating Margin (as % of sales including internal sales) | 14.5% (Q1 FY2026, ending March 2026) | 15.3% (Q1 FY2025, ending March 2025) | ↓ |
| Net Sales (External Customers), Full-Year Results | ¥295,343 million (Full Year FY2025, ending March 2025) | － | — |
| Core Operating Income (Full-Year Results) | ¥38,972 million (Full Year FY2025, ending March 2025) | － | — |
Business Details
The Japan Business encompasses the domestic cosmetics business organized by brand category (prestige, fragrance, premium, etc.) and the Healthcare Business, which handles beauty foods and over-the-counter pharmaceuticals. Key subsidiaries include Shiseido Japan Co., Ltd. and IPSA Co., Ltd. (domestic sales function). Under "Mirai Shift NIPPON 2025," the segment is pursuing improved profitability by concentrating activities on high-growth, high-profitability brands, products, and customer touchpoints, and by reducing fixed costs. In Q1 FY2026 (ending March 2026)... [Note: quarter ending March corresponds to Jan-Mar of the fiscal year ending December], net sales were ¥71,218 million, down 4.0% year on year.
Recent Overview
Q1 FY2026 net sales fell 4.0% year on year, and core operating income also declined 8.1%, indicating a soft performance
In Q1 FY2026 (ending March 2025), the Japan Business posted net sales of ¥71,218 million (down 4.0% year on year, down 3.6% on an organic basis) and core operating income of ¥10,418 million (down 8.1% year on year). The core operating margin declined to 14.5% from 15.3% in the same period a year earlier. Sales also declined on an organic basis excluding foreign exchange effects, suggesting that the recovery in domestic demand is lagging. Across the segment, expenses related to the structural reform "Action Plan 2025-2026" continue to be incurred.
Key Products
Growth Drivers
- Margin improvement through selection and concentration on core brands such as SHISEIDO and ELIXIR
- Realization of fixed cost reductions and structural reform effects based on "Mirai Shift NIPPON 2025"
- Continued contribution from inbound demand supported by sustained high levels of foreign visitors to Japan
- Strengthened brand power and sales contribution through the launch of new products featuring the latest technology
- Expansion of segment scale through the integration of IPSA's domestic sales function and the Healthcare Business
Risks
- Slowdown in inbound consumption: reduced purchasing appetite due to changes in traveler spending behavior and narrowing of the domestic-overseas price gap
- Macro environment limited to modest growth in the domestic cosmetics market
- Ongoing risk of continued structural reform expenses (Action Plan 2025-2026, etc.)
- Risk of consumer price sensitivity associated with the implementation of strategic price revisions
- Uncertainty in inbound demand due to changes in the consumption behavior of Chinese travelers
Last updated: March 23, 2026