Shiseido said its operating profit came in at 7.58 billion yen (HK$387.35 million) in the 12-month period ended December 31, compared with 28.13 billion yen the prior year.

A retailer of high-end personal goods, Shiseido is seen as a barometer for consumer confidence in China, a market the company and its peers have come to rely on for sales growth.

"China's cosmetics market suffered a prolonged downturn, weighed down by a decline in consumer spending and rising household savings amid worsening economic sentiment," the Japanese company said in a statement.

Shiseido said its China sales were down 4.6 percent year-on-year on a like-for-like basis, excluding the impact of foreign exchange and business transfers, and also forecast a sales decline in 2025.