The trading performance of Japanese hair care and cosmetics company Shiseido has deteriorated.

It posted a 21 per cent decline in net profit for the three quarters to December 31.

The company blamed the poor performance on the weak domestic market where its cosmetics business segment decreased 3.2 per cent. It says weak sales in China, where it saw restrained purchasing attitudes towards Japanese products, have dragged down its overseas earnings.

“Recently, there have also been signs of a contraction in purchasing sentiment toward Japanese products in general, making the business environment for the Shiseido Group even more difficult,” the company said.

Consolidated net sales totalled 484.4 billion yen (US$5.2 billion), down 1.2 per cent from the previous year. Operating income fell 65.8 per cent mainly due to a decline in the marginal gain stemming from lower domestic sales, as well as stepped-up investments in sales counters in Japan and overseas and increased advertising and promotional spending.

Shiseido expects to book a loss of around 6 billion yen (US$64.6 million) in the fourth quarter from reorganisation of its production and R&D bases. The company will release its full-year forecasts in March.

GB