Earnings guidance cut prompts sharp decline in shares

  • Shiseido shares fell 14% after cutting earnings guidance for 2023
  • Net profit projected to drop 47% to Y18.00 billion
  • Revenue expected to fall 8.2% to Y980.00 billion
  • Weak business in China and duty-free stores
  • Impairment losses of Y6.0 billion from plant restructuring
  • Net profit for nine months ended September dropped 29% to Y20.52 billion
  • Revenue declined 5.3% to Y722.42 billion

Shiseido shares took a significant hit as the company revised its earnings guidance for 2023, citing a worsening business situation in China. The Japanese cosmetics maker now projects a 47% drop in net profit to Y18.00 billion, down from the previous forecast of Y28.00 billion. Additionally, revenue is expected to fall 8.2% to Y980.00 billion, down from the previous estimate of Y1.000 trillion. Shiseido attributed the weak performance to clearance of inventory by retailers in China and duty-free stores, as well as a deteriorating economic sentiment and reduced purchases of Japanese products by Chinese consumers. The company also announced Y6.0 billion in impairment losses from the restructuring of its plant operations in Osaka. In the nine months leading up to September, net profit declined 29% to Y20.52 billion, while revenue dropped 5.3% to Y722.42 billion.

Factuality Level: 8
Factuality Justification: The article provides specific information about Shiseido’s earnings guidance for 2023, including the projected drop in net profit and revenue. It also mentions the reasons for the decline, such as weak business in China and the impact of Japan’s discharge of wastewater. The article includes financial figures and data from Shiseido’s nine-month performance. Overall, the information provided seems factual and based on official statements from the company.
Noise Level: 7
Noise Justification: The article provides relevant information about Shiseido’s earnings guidance for 2023 and the reasons behind the cut. It mentions the impact of weak business in China and duty-free stores, as well as the economic sentiment and consumer behavior in China. The article also includes financial figures and highlights the impairment losses from restructuring. However, it lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Shiseido shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Shiseido’s earnings guidance and the impact of its business in China. However, there is no mention of an extreme event.
Public Companies: Shiseido (N/A)
Key People:

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