Hanssem Reports Operating Loss of 15.7 Billion KRW in Q1... 'Turned to Deficit'

Hanssem announced on the 4th that it has tentatively recorded an operating loss of 15.737 billion KRW on a consolidated basis for the first quarter of this year, marking a return to the red. During the same period, sales decreased by 10.8% year-on-year to 469.255 billion KRW, and net loss amounted to 14.222 billion KRW, also turning negative.

Looking at the sales changes by business segment compared to the same period last year, the home remodeling division plummeted by 30.8%, and home furnishing declined by 11.1%. On the other hand, B2B (business-to-business) sales increased by 15.4%. A Hanssem official stated, "This is the result of a downturn in the real estate market and reduced consumer spending due to inflation," adding, "Since last year, investments in digital transformation (DT), store renewals, exhibition improvements, and brand campaigns have also been reflected in the performance."

Hanssem expects sales and profitability to gradually improve starting from the first quarter as the cost of sales ratio has recently improved. Additionally, for offline stores, following Songpa, Goyang, and Hanam, the Mokdong branch will be renewed in the second half of the year to introduce a new exhibition strategy. Through this, they plan to enhance operational efficiency by improving the cost ratio and thereby increase profit margins.

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