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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. 

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.

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