[Click eStock] "Hansome, Online Sales Growth Noted Despite Q1 Earnings Decline"

Ebest Investment & Securities Issues 'Buy' Rating and 28,000 KRW Target Price... Closing Price on 20th at 23,500 KRW

The Handsome House Gwangju Branch (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Although Hansome's first-quarter performance is expected to decline, there is an opinion that attention should be paid to the growth trend of online sales.

According to Ebest Investment & Securities on the 21st, Hansome's first-quarter performance is estimated to be 280 billion KRW in sales and 25.6 billion KRW in operating profit due to the impact of the novel coronavirus infection (COVID-19). These figures represent a decline of 10.4% and 24.7%, respectively, compared to the previous year.

Researcher An Jin-ah of Ebest Investment & Securities said, "As the domestic retail sales slump became visible from February, Hansome is seeking alternatives through its own malls such as The Hansome.com and H Fashion Mall, as well as launching a mobile platform (scheduled for May) and other online channels," adding, "Although the mobile platform is unlikely to act as a margin momentum within the first half of the year, it is meaningful in proactively responding to changes in consumption patterns toward online and securing a new customer base."

While offline sales are sluggish, the growth rate of online sales has surged since last month. After COVID-19, online demand for high-end brands such as Time and Mine has expanded. Based on the first quarter, the online sales growth rate increased by about 70% compared to the same period last year. The proportion of online channels in total sales has also risen from the low 10% range last year to 20%.

Ebest Investment & Securities gave Hansome a 'Buy' investment rating with a target price of 28,000 KRW. The closing price on the 20th was 23,500 KRW.

This content was produced with the assistance of AI translation services.