- Visitors to Japan snapping up company's high-end cosmetics
- Operating profit gains, company reports on preliminary basis
Shiseido Co. surged by the most on record in Tokyo trading after the Japanese cosmetics maker reported that buying by tourists helped fuel profit that beat analyst estimates.
The shares soared as much as 20 percent to 2,690.5 yen as of the 11:30 a.m. break in Tokyo trading. Operating profit climbed to 37.5 billion yen ($309 million) in the nine months ended Dec. 31, the company reported Jan. 29 on a preliminary basis.
Shiseido is benefiting as a wave of tourists, led by visitors from China, snaps up more of its skin creams and hair-care products. A decline the value of the yen relative to other currencies and rising wealth in China has fueled an increase inbound travel to Japan.
Sales were about 763 billion yen for the nine months. The company is changing its business year end to Dec. 31, from the previous April through March fiscal year, so financial results for 2015 do not compare directly.
About 5 million people from mainland China visited Japan last year, twice as many as in 2014, according to the Japan National Tourism Organization. That’s helped sales of goods from diapers to condoms, feminine-care products, rice cookers and toilet seats.