Shares in Shiseido fall 6 percent as 2017 earnings forecast lowered

Shares in Shiseido fall 6 percent as 2017 earnings forecast lowered

Shares in Shiseido fell 6.4 percent at last week’s close after the Japanese cosmetics giant lowered its earnings outlook for the year ahead, according to a report published by Barron’s Asia.

Shiseido adjusted its sales forecast to 10.5 percent growth, bringing the total to ¥940 billion, while operating profit is expected to rise 23.7 percent to ¥45.5 billion, below the ¥50 billion to ¥60 billion target previously announced.

Analysts are attributing the lower forecast to both Japan’s strong yen and negative interest rates, which have increased pension costs, as well as M&A activity.

 

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