Shiseido Co Ltd

4911: XTKS (JPN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥‎1,874.00	Jlcktvf	Lghlsdwb

Shiseido's Profit Guidance Looking Cautious; Awaiting Domestic Demand and China Margins to Recover

Jeanie Chen

Feb 9, 2022

Narrow-moat Shiseido guides encouraging 14% top-line growth (excluding divestiture impacts) in 2022 in anticipation of a pickup in domestic demand from the second half. Yet, the guidance of 44% growth in 2022 operating profit was 35% below our estimate. Management has decided to take a conservative stance given uncertainty surrounding the omicron surge. While the degree of profit rebound hinges on the development of COVID-19, we think profit upward revision looks likely.

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