Shiseido’s profits surge 90% as turnaround plan takes shape

By Lynsey Barber | Published: 7-Aug-2026

Improvement in the NARS Cosmetics and Cle de Peau de Beauté owner’s performance in the Americas has helped boost profit, while fragrance was also a standout performer for the Japanese beauty giant in Q2

Shiseido’s core operating profit surged 90% to ¥44.4bn in the first half of the year, as the Japanese beauty giant’s turnaround takes shape.

Net sales of ¥499bn were flat on a like-for-like basis in the six months to the end of June 2026, however organic revenue grew in the second quarter.

Asia Pacific led the way with 2% growth in the region in H1, while Japan and China, including travel retail, remained flat.

Sales in the Americas and EMEA declined 1%, with stronger competition in the regions and “continued challenges” with selected brands.

However, Shiseido said it is "steadily progressing towards profitability” in 2026 in the Americas, and the performance was an improvement on the 9.5% decline in the region in 2025.

Across the business, core brands NARS Cosmetics and Cle de Peau de Beauté grew 3% and 2% respectively in the first half , with the latter’s growth accelerating to 6% in the second quarter, while Shiseido declined 3%.

The launch of NARS’ Natural Matte Longwear Foundation “missed expectations”, however, largely due to the US.

Meanwhile, skin care brand Elixir grew 7% and emerging line Baume 3%.

Fragrance growth accelerated in the second quarter, up 12% due to the expansion of its portfolio, which includes Narciso Rodriguez and Issey Miyake.

The launch of Italian fashion house Max Mara’s first-ever scent, as well as the geographic roll out of Zadig and Voltaire, are expected to continue momentum in the second half of the year.

Drunk Elephant sales declined 12% in H1, and 9% in Q2, indicating a slight improvement.

Shiseido noted the roll out of Kamo Drops – the brand’s first entry into complexion products – in the second half of the year as part of its turnaround of the brand.