Shiseido Company, Limited revised consolidated earnings guidance for the year ended December 31, 2015. For the year, the company now expects net sales of JPY 763,000 million, operating income of JPY 37,500 million, ordinary income of JPY 37,500 million and net income attributable to owners of the parent of JPY 23,000 million or JPY 57.64 per share compared to previous guidance of net sales of JPY 760,000 million, operating income of JPY 30,000 million, ordinary income of JPY 30,000 million and net income attributable to owners of the parent of JPY 13,000 million or JPY 32.58 per share.
Net sales are expected to exceed those of the previous forecast, as the Japan Business has grown briskly driven by effective brand innovation initiatives and ongoing strong demand from inbound tourists. Operating income and ordinary income are expected to significantly exceed previous forecasts, which can be attributed to a number of factors, including: the increase in gross profit as a result of increased sales; product mix improved through sales expanded in the mid-to-high price range products; cost efficiency enhanced while expanding marketing investment in Japan and all areas of overseas; and greater-than-expected progress in implementing cost structure reforms. In line with this, net income attributable to owners of parent is expected to surpass the previous forecast for the above reasons as well as an improvement in tax expenses due to factors including tax effect relating to elimination of unrealized profit.