Shiseido's shares rose the most in nearly eight years after its fourth-quarter earnings and full-year forecast beat analyst estimates. The stock surged as much as 15% in Tokyo trading on Thursday, marking the biggest intraday gain since May 2018. The cosmetics giant is cutting costs and prioritizing core brands amid its toughest business conditions in decades.
Shiseido announced on Tuesday that its core operating profit for the fourth quarter rose 61.4% to ¥14.4 billion ($94 million) from a year earlier. This performance comes as the company navigates its most challenging business conditions in decades, through cost-cutting measures, prioritization of core brands, and adjustments to its product lineup.
For the full year ending December, Shiseido expects core operating profit of ¥69 billion, surpassing the Bloomberg consensus estimate of ¥63.7 billion. Once a strong global contender in cosmetics, the firm is adapting amid factors including China-Japan relations.
The positive results triggered a sharp rally in the stock, which climbed as much as 15% during Thursday's trading in Tokyo—the largest intraday gain since May 2018. Analysts view this earnings beat as a sign of potential sustained recovery, though broader market uncertainties persist.
