Shiseido: core operating profit up 124%, 2026 guidance raised

The Japanese group is emerging from a 2025 weighed down by impairments. Over nine months it more than doubled its core operating profit and raised its annual targets, while sales barely grew once currency effects are stripped out. Clé de Peau Beauté, its luxury brand, is one of the drivers.

4.19 billion euros of sales in nine months

According to the consolidated accounts published on 10 November 2026, net sales from 1 January to 30 September reached 741.1 billion yen, or about 4.19 billion euros (ECB rate of 13 November 2026). The 6.8% rise is measured in yen. At constant exchange rates it falls to 0.2%, and to 0.7% on a like-for-like basis, excluding currency effects and business transfers. The weak yen explains the gap: Shiseido’s average rate for the period was 184 yen to the euro, against 165.5 a year earlier.

On a like-for-like basis the trend is improving: -3% in the first quarter, +2% in the second, +3% in the third. The third quarter alone brought sales of about 1.37 billion euros (242.2 billion yen), up 2.6% like for like.

Core operating profit up 2.2 times

Core operating profit excludes non-recurring items (restructuring, impairments, acquisitions). It rose from 30.1 to 67.5 billion yen, about 381.5 million euros, and the margin from 4.3% to 9.1%. The group credits the jump to its structural reforms and cost control: 72 billion yen in cumulative savings from 2024 to 2026.

Profit attributable to owners of the parent came to 44.4 billion yen, about 251 million euros, against a loss of 44 billion yen caused in 2025 by impairments in the Americas.

Clé de Peau Beauté, 20% of group sales

In its investor presentation, Shiseido names Clé de Peau Beauté and the SHISEIDO brand as drivers of the recovery. Its prestige brand made up 20% of nine-month sales and grew 3%, a change calculated at the exchange rates budgeted at the start of the year. In the third quarter it gained 6%. The SHISEIDO brand (23%) slipped 1% over nine months.

The launches cited include Cream Supreme, sold in France as Crème Restauratrice Suprême. Over nine months the brand grew by double digits in China and travel retail, but fell by more than 10% in Japan. At the briefing of 10 November, management linked its third-quarter dip in China to the slowdown in Hong Kong.

Drunk Elephant falls another 16%

The skincare brand now accounts for just 1% of group sales. Its sales fell 16% over nine months and 23% in the third quarter. Shiseido lists it among its turnaround brands and is betting on Kamo, its second-half launch.

Fragrance, 9% of sales, gained 4%, driven by Max Mara. A trend also seen at Puig, which is aiming for the world’s top two in fragrance.

China and travel retail provide support

The group’s largest market, China and travel retail, grew 1.2% like for like, and its core operating profit 28.2%. Japan, the second-largest market, slipped 0.4% like for like. The Americas returned to profit. China was also decisive for La Prairie, at Beiersdorf, in the third quarter.

Why has the 2026 guidance been raised?

Shiseido now targets 2026 net sales of 1,025 billion yen, about 5.80 billion euros, against 990 billion yen previously. Core operating profit guidance rises from 69 to 87 billion yen, and profit attributable to owners of the parent from 42 to 62 billion yen, about 350.6 million euros. The increase comes from currency and savings, not from trading: the group cut its like-for-like growth forecast from 3% to 1%, citing weaker sales in Japan, EMEA, the Americas and Asia-Pacific.

The exchange-rate assumption moves from 170 to 182 yen to the euro, and asset sales lift net profit. The annual dividend stays at 60 yen per share.

Information verified on 13 November 2026. Sources: Shiseido nine-month consolidated accounts, third-quarter 2026 results presentation, summary of the 10 November 2026 briefing, European Central Bank.