Shiseido shares rise following stake purchase by UK investment firm

London-based investment firm Independent Franchise Partners has purchased a 5.2% stake in Shiseido Company, the owner of NARS and Drunk Elephant.

As a result of the transaction, the Japanese beauty conglomerate's stock ended 19 February up 13.1%.

Independent Franchise Partners said in a filing with Japan’s Ministry of Finance that it could make proposals.

It comes after Shiseido's stock had dropped by 35.7% over the past year, amid a declining profits in 2024.

Earlier this month, the company reported a 73.1% decrease in operating profit for the year ended 31 December.

It attributed the slump to lower consumer spending in China, a trend the business expects to continue into 2025.

"China's cosmetics market suffered a prolonged downturn, weighed down by a decline in consumer spending and rising household savings amid worsening economic sentiment," Shiseido said in a statement at the time.