Shiseido, a prominent beauty conglomerate from Japan, has reported a 4% drop in net sales, now totaling $1.7 billion for the second quarter of 2024. This downturn is largely attributed to a staggering 20% decline in its U.S. market, marking a sharp contrast to the previous quarter’s growth of 9%.

The brand has specifically noted that shipments and production delays have been key factors contributing to weaker sales performance in North America. Despite the overall decline, Shiseido saw growth in its Drunk Elephant skincare line—sales climbed by 11%—and its fragrance division, which supplies popular brands like Narciso Rodriguez, enjoyed a 15% increase.

In Asia, particularly China, Shiseido faced additional challenges. Sales there fell by 9% due to intense price competition and reduced consumer spending. Furthermore, a boycott against Japanese-owned brands has emerged, fueled by environmental concerns linked to the Fukushima water crisis.

Looking ahead, Shiseido is not standing still. The recent appointment of Kentaro Fujiwara as CEO signals a shift towards revitalizing the company’s strategy. With plans to explore acquisitions and a newly secured fragrance license with Max Mara, Shiseido aims to navigate these turbulent waters and regain market share before the year concludes.