Shares in Shiseido tumbled on Monday after the cosmetics maker cut its annual profit forecast, citing falling demand from Chinese consumers concerned about the release of contaminated water from Japan’s Fukushima nuclear site.
The stock declined 14.3 per cent, putting it on track for the biggest one-day percentage drop in at least 20 years, according to data from LSEG.
Shiseido expects core operating profits of ¥35bn for 2023, down 42 per cent from the previous estimate, the company said on Friday.
Net sales in Shiseido’s China business fell 15.5 per cent year on year in the third quarter, which the group attributed to “weakening sentiment” towards the Chinese economy and a pullback following the Fukushima water release.
