Shiseido shares dropped to their lowest level in eight years, falling by as much as 8.4% yesterday, after investors were disappointed by the company’s plan to offset its slump in China by focusing on growth in other markets. The Japanese cosmetics brand set a lower operating profit margin target of 7% for 2026, down from the previous 9% goal for 2025. Despite this being double the expected profit for this year, the market remained skeptical about the strategy, especially amid a significant decline in demand for Shiseido’s products in China due to tensions with Japan. The company is also implementing a cost-cutting program, including an early retirement plan for 1,500 employees, to save over 65 billion RMB ($435.5 million) by 2026.