Key Takeaways:Shiseido’s 2025 first-half results show a decrease in net sales by 8% for the first half of 2025.The company said this is primarily due to weakness in China’s travel retail sector and underperformance from Drunk Elephant.Drunk Elephant was not included on Shiseido’s list of core brands.Following a bumpy first quarter that saw Shiseido's net sales decline by 8.5%, the Japanese conglomerate is still struggling to get back on a growth trajectory. Shiseido’s 2025 first-half results show a decrease in net sales by 8% for the first half of 2025 compared to the previous year, primarily due to weakness in China’s travel retail sector and underperformance from Drunk Elephant.However, change is coming: The company also reported a 21% increase in core operating profit, which was partly offset by structural reform expenses associated with workforce reductions in the Americas region.In July, the company reportedly initiated “massive” layoffs across several Shiseido Americas brands, according to beauty industry watchdog Estée Laundry. Drunk Elephant, which Shiseido acquired for $845 million in 2019, was hit the hardest. One employee described the situation to BeautyMatter as "more than trimming the fat … It was heads on chopping blocks."A Shiseido Americas representative stated in the Q2 2025 results presentation that the company is undergoing a business transformation to achieve growth and profitability.“Our top priority is to steadily implement our action plan and build a business structure that generates stable profit,” said Kentaro Fujiwara, President and CEO of Shiseido.