Shiseido's stock price hit an eight-year low, showing that investors are indifferent to its revitalization measures of "rob Peter to pay Paul".
Shiseido's stock price fell 8.4% during the session on the 2nd, reaching a new low since November 2016. It ended up falling 6.6% to 2,666.5 yen.
The Japanese cosmetics company founded in 1927 announced on Friday that it would set its operating profit margin target at 7% for 2026, which is lower than the original target of 9% for 2025. Although the latest financial forecast is more than double the target that may be achieved this year, Shiseido is still trying to promote growth plans in Japan and other major markets to make up for the sharp decline in the Chinese market.
However, the market was not convinced by the above plan.
Hisae Kawamoto, an analyst at Jefferies Group, had a negative evaluation of the company's strategy and believed that the structural transformation plan may not be effective and may even cause "investor fatigue."
China is the cosmetics company's most important market outside Japan. Tensions between Japan and China over Japan's decision to discharge Fukushima nuclear wastewater have affected the company's performance in China.
Shiseido Chief Executive Kentaro Fujiwara told reporters on Friday that "the market will continue to be unstable for the foreseeable future."
This year, the company announced a retirement plan for 1,500 employees in Japan as part of a two-year savings plan that is expected to reduce expenses by 40 billion yen, with additional savings expected 25 billion yen in 2026.
