Shiseido cancels Dolce & Gabbana contract in cost-cutting move

Sales of high-end brand underperformed other cosmetics lines

Shiseido produces and sells Dolce & Gabbana's perfume and cosmetics around the world under a licensing agreement.

KOHEI SAKAI, Nikkei staff writer

April 30, 2021 04:36 JST

TOKYO -- Japanese cosmetics maker Shiseido has terminated a product-licensing contract with Italian fashion house Dolce & Gabbana as part of a business restructure amid slumping sales due to the coronavirus pandemic.

The changes will go into effect at the end of the year, the company said in a statement on Wednesday. The move is expected to result in an extraordinary loss of roughly 35 billion yen ($321 million) for the financial year through December, including the impairment of trademark rights.