Shiseido Shares Tumble as Worsening China Business Prompts Guidance Cut
By Kosaku Narioka
Shiseido shares fell sharply after it cut its earnings guidance for 2023 due partly to a worsening of its business in China.
Shares were recently 14% lower at 4,191 yen on Monday morning.
Shiseido said after Friday's market close that it projects net profit to drop 47% to Y18.00 billion ($118.8 million) this year, down from its previous forecast of Y28.00 billion, and revenue to fall 8.2% to Y980.00 billion, down from Y1.000 trillion expected previously.
The Japanese cosmetics maker said its business had been weak in China and its duty-free stores as retailers cleared their inventory. It said the economic sentiment in China has deteriorated, and Chinese consumers have pulled back on purchases of Japanese products after Japan's discharge of wastewater from the Fukushima Daiichi nuclear plant in late August. Shiseido said it will book Y6.0 billion of impairment losses from the restructuring of its plant operations in Osaka this year.
For the nine months ended September, net profit dropped 29% from a year earlier to Y20.52 billion and revenue declined 5.3% to Y722.42 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
November 12, 2023 22:04 ET (03:04 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Best- and Worst-Performing Stocks of Q2 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations