[Click eStock] "AmorePacific Likely to Miss 2Q Earnings Estimates... Target Price Down"

NH Investment & Securities lowered the target price for Amorepacific from 170,000 KRW to 140,000 KRW on the 26th.

Amorepacific is expected to record sales of 946.7 billion KRW and an operating profit of 33.7 billion KRW in the second quarter. Although the operating profit turned positive compared to the same period last year, it fell short of market expectations. This is attributed to weak performance in China and duty-free sales, as well as expenses incurred for global marketing.

Domestic cosmetics operating profit is estimated at 32.1 billion KRW, down 12% from the same period last year. Duty-free sales dropped by 31%, and e-commerce sales decreased by 15% due to adjustments in direct overseas shipments, which widened the decline in profits. Household goods sales continued to post an operating loss of 1.8 billion KRW.

In the overseas segment, sales increased by 29% to 382.4 billion KRW, but an operating loss of 1.8 billion KRW was recorded, continuing the deficit.

Jiyoon Jeong, a researcher at NH Investment & Securities, said, "Since the discontinuation of low-priced product lines was actively carried out in the second half of last year, profitability improvement is expected from the third quarter," adding, "Currently, new products and sales through the Olive Young channel are performing well in the second quarter."

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