Shiseido Earnings Hit by China

Shiseido Earnings Hit by China

THE WHAT? Shiseido reported a 40% decline in annual earnings, influenced by a slowing Chinese economy and reduced consumer spending.

THE DETAILS China, accounting for about 25% of Shiseido’s sales, has presented challenges, including impacts from the Fukushima water controversy expected to persist until the second quarter of 2024. The company’s operating profit dropped to 28.13 billion yen for the year ending in December, below the anticipated 34.05 billion yen.

THE WHY? Shiseido’s share price has decreased by 35% over the past year, in contrast to the Nikkei average’s 34% gain, reflecting the broader issues foreign brands face in China amid economic headwinds and increasing competition from domestic brands.

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