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Axxzia Cut Full-Year Earnings Forecasts Due to Weaker-Than-Expected Chinese Demand

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Axxzia (TYO:4936) slashed its full-year forecast to an attributable loss of 105 million yen compared with a profit of 370 million yen previously, citing a sharper-than-expected slowdown in Chinese e-commerce sales.

The company also cut its basic EPS estimate to a loss of 4.59 yen from earnings per share of 16.23 yen. while its net sales forecast was lowered to 13.5 billion yen from 14.4 billion yen initially, according to a Tokyo bourse filing on Thursday.

Inbound store sales in Japan also underperformed due to fewer Chinese tourists, while subsidiary M&D faced sluggish cosmetics imports from price hikes linked to a weaker yen.

Profit erosion worsened as high-margin Chinese e-commerce revenue declined, yet advertising and commission costs surged from intensified competition.

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