[Click e-Stock] "Handsome, Turnaround to Accelerate"

On November 4, Hanwha Investment & Securities analyzed that a turnaround is expected for Handsome starting in the fourth quarter. The company maintained its "Buy" investment rating and a target price of 18,000 won.

Handsome recorded sales of 309.6 billion won and operating profit of 2.5 billion won in the third quarter. This represents a decrease of 1.5% and 58%, respectively, compared to the same period last year. Jin Hyun Lee, a researcher at Hanwha Investment & Securities, stated, "Although consumer sentiment has been gradually recovering, the recovery has not extended to the mid-to-high-end fashion brands that Handsome is positioned in." He added, "Due to the timing of Chuseok, outlet sales-which account for a large portion of sales during the holiday-declined by double digits."

However, he emphasized that the possibility of a turnaround from the fourth quarter is high. He explained, "It is estimated that department stores posted double-digit growth in overall sales in October, and not only luxury goods but also apparel sales are showing strong performance across categories."

He further noted, "The consumption outlook is positive because the wealth effect may emerge from rising asset prices due to increased liquidity, and at the same time, strong earnings from major companies could lead to an income effect early next year." He stressed, "Starting from the fourth quarter, we expect to see a sustained trend of improving consumption." He added, "We also expect that Handsome's rebound in sales will not be a temporary phenomenon but will likely be sustainable."

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