Shiseido Company, Ltd. shares recorded their biggest increase in nearly eight years after the company reported fourth-quarter earnings and full-year forecasts that surpassed analyst expectations.

The stock surged as much as 14.4% during early trading in Tokyo on Thursday, marking its largest intraday gain since May 2018.

After missteps in the North American market and losing market share to agile Asian competitors, Shiseido—once a rival to L'Oréal and Estée Lauder—has faced its most severe challenges in decades.

The company is now implementing cost reductions, focusing on core brands, expanding its fragrance lineup, and entering the medical skincare sector in an effort to regain its competitive edge.