March 11 (Bloomberg) -- Shiseido Co., the Japanese cosmetics maker that cut its profit forecast in January, said President Hisayuki Suekawa will step down at the end of March.
Suekawa offered to resign for health reasons effective March 31, the company said in a statement today. Chairman Shinzo Maeda, who was president from 2005 to 2011, will take on the added role of president.
Shiseido, which gets about 56 percent of its revenue from Japan, has said it intends to trim production costs as it faces depressed local demand amid a shrinking population. The company in January cut this year’s net income forecast 52 percent to 10.5 billion yen ($109 million) as it projected a decline in sales. The company also said it will book costs for restructuring facilities, including closing its factory in Kamakura, Japan, near Tokyo.
The manufacturer of makeup, shampoo and skin moisturizers climbed 6.6 percent to close at 1,362 yen in Tokyo trading today, the most since March 2011. The stock has lost 7 percent over the last year compared with a 23 percent gain for the Topix index.
Shiseido, whose brands include its namesake and Cle de Peau BEAUTE, NARS, and Aupres, last year announced a reorganization plan in its U.S. business, which included merging back office functions between its subsidiaries and Bare Escentuals Inc., which it acquired in the U.S. in 2010 to boost growth overseas.
Suekawa, 53, has been president since April 2011, and will become a senior adviser April 1, according to the statement. Maeda, 66, has been with Shiseido for more than four decades, holding various roles including in its international division, according to the company’s website.
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