"Recovery in Consumer Sentiment and Premium Effect"... Hansome's Operating Profit Increased by 49% Last Year

[Asia Economy Reporter Eunmo Koo] Hansome, a fashion specialist company affiliated with Hyundai Department Store Group, recorded double-digit growth in operating profit last year. As consumer sentiment, which had been suppressed due to COVID-19, recovered last year, both online and offline sales increased, with premium brands such as Time and Mine showing strong sales.

Hansome announced on the 8th that its consolidated operating profit for last year was tentatively estimated at 152.197 billion KRW, a 49.1% increase compared to the previous year. During the same period, sales rose 16.0% to 1.38742 trillion KRW, and net profit also increased by 30.6% to 110.9 billion KRW.

Operating profit in the fourth quarter of last year was 51.76 billion KRW, up 43.2% year-on-year, and sales were 445.017 billion KRW, up 15.1%. Net profit increased by 19.2% to 37.061 billion KRW.

Last year, offline sales grew by 13.3% compared to the previous year, while online sales grew by 30%. The strong growth in sales was driven by high-end brands such as women's character brands, men's, and overseas select shops. Operating profit also improved significantly as offline sales normalized and the proportion of online sales expanded from 18.6% in 2020 to 20.8% last year.

Hyunjin Park, a researcher at Shinhan Financial Investment, analyzed, “With a differentiation strategy focused on premium, Hansome is deploying exclusive VIP consultants and premium laundry services online, which is understood to be increasing the purchase amount of high-quality customers within the online channel.”

A Hansome official explained, “Due to the recovery effect of consumer sentiment, both online and offline sales increased, and sales and operating profit both rose thanks to strong sales of premium brands such as Time, Lanvin Collection, and Time Homme.”

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