[Click eStock] "Hansome, Continued Profitability Improvement Through Balanced Online and Offline Growth"

Daishin Securities Report

[Asia Economy Reporter Minji Lee] Daishin Securities maintained its buy rating and target price of 53,000 KRW for Hansome on the 8th.

In the third quarter, sales and operating profit reached 294.6 billion KRW and 31.8 billion KRW respectively, marking growth of 14% and 41% compared to the same period last year. Although the sales growth rate slightly slowed due to strengthened social distancing measures in July, it is analyzed that the growth rate recovered again from August.

Yoo Jeong-hyun, a researcher at Daishin Securities, said, “September saw a greater recovery compared to August, resulting in a high overall growth rate for the third quarter,” adding, “There was about 23% growth in the first quarter and about 13% growth in the second quarter.” Female character brands such as Time, Mine, and System, as well as casual volume sales, showed high growth rates, and it is analyzed that sales of the Lanvin Collection and The Cashmere brands increased by about 30-40%.

Furthermore, Yoo explained, “Luxury and imported select brands also experienced significant growth. By channel, offline sales increased by 8%, while online sales grew by 40%, showing a high growth trend.”

Operating profit was influenced by strong sales in the high-margin online channel and improved profitability in the offline channel. Previously, more than half of the online channel sales were from existing outlets, but due to the impact of COVID-19, the proportion of normal season product sales increased, contributing to online growth rate and margin improvement.

Researcher Yoo stated, “With balanced growth across online and offline channels, the third quarter operating profit margin improved by 2.1 percentage points year-on-year to 10.7%, despite it being the off-season.”

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