[Click eStock] "Hansome Recovering from COVID-19, Expanding Online... Investment Appeal Up"

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment announced on the 23rd that it is raising the target stock price of Hansome to 48,000 KRW, stating that the company will enhance its medium- to long-term investment appeal through quality improvement of profits by recovering sales to pre-COVID-19 levels while reducing fixed cost burdens.

Hansome has recently been increasing its sales scale by expanding the proportion of online channels and diversifying categories. It is analyzed that the differentiation point lies in the fact that three online platforms?The Hansome.com, H Fashion Mall, and EQL?are each attracting diverse customer segments in different ways.

From existing Hansome brands to imported and contemporary brands, as well as domestic emerging designer brands, the company is expanding its online business with specialized images on different platforms. The online sales ratio is approaching around 20% (230 billion KRW), and especially the online sales scale of its own brands is significantly higher compared to other fashion companies, which is evaluated to be improving the quality of profits.

As an offline channel strategy, instead of opening stores in the form of concept stores, Hansome is continuously closing inefficient stores while adapting to trend changes. The monthly average sales of the Gwangju, Jeju, and Cheongju The Hansome House concept stores opened last year are around 700 to 800 million KRW, and among brands, The Cashmere continues to grow sales by strengthening the lifestyle category. The licensed brand Lanvin is also expanding its casual concept line, attracting younger customers and increasing volume.

Hyunjin Park, an analyst at DB Financial Investment, stated, "It is understood that the performance improvement trend is being maintained in the first quarter of this year as well," adding, "Especially, the base effect of sales decline due to COVID-19 is entering a full-scale phase, and sales are expected to grow 17% year-on-year, with operating profit increasing by 30% to 38 billion KRW."

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