Shiseido Stock Plunges After H1 Earnings Are Hit by China, Restructuring Costs

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Shiseido (SSDOY) stock plunges by its daily limit after H1 earnings are hit by business in China and restructuring costs.

Co. Ltd.’s stock tanked Thursday, one day after the Japanese beauty giant released first-half earnings that were weighed down by dampened demand in China and restructuring costs.’s stock plunged by its daily limit of 700 yen, or $4.79, equivalent to 15.5 percent, to 3,810 yen at the Tokyo Stock Exchange’s close.

The group said the China business was adversely impacted by the slowdown in spending on the back of faltering economic sentiment. Shiseido also logged 20.4 billion yen of structural reform costs. “The domestic cosmetics market remained solid, underpinned by steady demand as well as a recovery in the number of foreign visitors to Japan, which exceeded its pre-pandemic levels, although price hikes continued to weigh on household spending,” Shiseido said in a statement Wednesday.

“After a very slight recovery at the start of the year, market growth turned negative in the second quarter, as the comparison based was very high,” L’Oréal chief executive officer Nicolas Hieronimus said during a conference call with financial analysts and journalists on July 31. “And we are not seeing any pickup in consumer confidence, which is critical to growth in beauty.”“Within that, there was a huge divergence in trends,” Hieronimus said.

 

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