The companies cited “cooling” consumer sentiment in financial statements showing a slowdown in sales over the past three months.
Lower sales expectations
Kao reduced its sales forecast by 3.4 percent for the fiscal year ending March, 31 to ¥1,330bn ($14.81bn) after posting a 0.4 percent increase in turnover for the nine months ending December, 31.
Beauty sales fell 2.3 percent over the same period. Kao said sales of mid-priced cosmetics were worst affected by the falling consumer confidence in recent months.
Meanwhile, Shiseido cut its net sales forecast for the fiscal year by 3.2 percent to ¥700bn.
Over the last nine months, the Japan-based manufacturer said sales dropped 3.4 percent ¥518.5bn.
Sales in retreat
In a statement, Shiseido said: “Both Japanese and overseas economies showed clear signs of retreat, while conditions for consumable goods became more difficult.”
Sales were not the only figures to take a hit over the past nine months. Profits also came under attack from lower sales and higher raw material prices.
At Shiseido, operating income fell 25.7 percent to ¥37.3bn while Kao announced a ¥4.7bn fall in operating income to ¥91.4bn.
