[Click eStock] "Hansome, Gradual Stock Price Recovery Expected Starting 4Q"

NH Investment & Securities maintained a buy rating and a target price of 35,000 KRW for Hansome on the 5th, stating that the current stock price, which only reflects concerns about consumer slowdown, is expected to gradually recover starting from the fourth quarter of this year when the domestic demand base burden eases.

Jiyoon Jeong, a researcher at NH Investment & Securities, explained, "Considering that the consumer sentiment index, a leading indicator of domestic retail sales, exceeded the 100 mark for the first time in 13 months in June, Hansome's stock price, which has only reflected concerns about domestic consumption slowdown over the past year, is expected to gradually recover starting from the fourth quarter when the base burden eases."

On a consolidated basis for the second quarter, Hansome's sales are expected to decrease by 3% year-on-year to 347.8 billion KRW, and operating profit is forecasted to decline by 19% to 22.3 billion KRW. The increase in costs for importing brand store openings is expected to slightly underperform previous operating profit estimates.

Growth rates by channel are estimated to be a 4% decrease online and a 2% decrease offline. In April and May, department store same-store sales growth rates were down 2.5% and 0.2%, women's suit growth rates decreased by 1.3% and 0.3%, and women's casual wear growth rates recorded 6.2% and 3.8%, respectively.

Analysis suggests that the monthly growth rate of department stores, the main sales channel, is slowing down, and despite brand power, a negative base effect is inevitable. However, for major imported brands like Totem, although the sales proportion is small, sales per store are stable enough to be comparable to those of in-house brands.

Researcher Jeong stated, "The operating profit margin for the second quarter is estimated at 6.4%," adding, "Due to increased launch costs for cosmetics and imported fashion brands such as Oera, Veronica Beard, and Tom Greyhound, as well as a slowdown in online malls, margins are expected to decline compared to the reopening phase."

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