THE WHAT? Japanese cosmetics group Shiseido reported a 124% increase in core operating profit for the first nine months of 2026 and raised its full-year earnings forecast, supported by restructuring, cost reductions and improving sales momentum.

THE DETAILS Shiseido reported net sales of ¥741.1 billion, up 7% year on year, with like-for-like growth of 1% for the nine months ended September 2026. Core operating profit increased 124% to ¥67.5 billion, while the core operating margin improved to 9.1%, compared with 4.3% a year earlier. Profit attributable to owners of the parent reached ¥44.4 billion, reversing a ¥44 billion loss in the previous year. Growth was supported by SHISEIDO and Clé de Peau Beauté, alongside improving performance in China, travel retail and Asia Pacific. The company raised its full-year core operating profit forecast from ¥69 billion to ¥87 billion and its net profit forecast from ¥42 billion to ¥62 billion, although it lowered its underlying sales growth expectations. Shiseido also reported cumulative cost reductions of ¥72 billion between 2024 and 2026 as part of its restructuring programme.

THE WHY? The results highlight the impact of restructuring and disciplined cost management on profitability across the global cosmetics industry, even as underlying sales growth remains modest. Shiseido’s strategy of prioritising core brands, streamlining operations and reallocating investment towards higher-growth markets demonstrates how established cosmetics manufacturers are seeking to improve margins while rebuilding sustainable growth. The company is also targeting a core operating margin of at least 10% by 2030.

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