[Click eStock] Hansome, 4Q Operating Profit Expected at 49 Billion KRW... Up 36% YoY

Offline Performance Exceeding Expectations
Combined Effects of Cold Weather and Base Effects

[Asia Economy Reporter Minwoo Lee] Hansome is expected to achieve solid performance in the fourth quarter of last year. This is attributed to a combination of cold weather and the base effect from the previous year, which contributed to favorable offline business conditions.

On the 12th, Hana Financial Investment maintained its 'Buy' rating and target price of 50,000 KRW for Hansome, citing these factors. The closing price on the previous day was 35,800 KRW.

The fourth quarter results for last year are forecasted at consolidated sales of 438.8 billion KRW and operating profit of 49 billion KRW, representing increases of 13.5% and 35.9% respectively compared to the same period last year. Despite already solid performance in October and November compared to the previous year, the company recorded high single-digit growth, and December saw a high growth rate exceeding 20%. In addition to existing brands such as Time and Mine, high-margin brands like Lanvin Collection and The Cashmere are understood to have driven sales growth.

Strong performance in offline channels was particularly effective. Analysts attribute this to a combination of the low base effect from the previous year, cold weather, and strong department store apparel sales. The high rate of full-price sales in October and November also positively impacted profitability. The online channel is expected to grow by 21% compared to the same period last year, maintaining a sales proportion of around 20%. Although growth slowed compared to the third quarter, it is understood that online sales additionally absorbed offline purchasing demand.

Hyunjung Seo, a researcher at Hana Financial Investment, explained, "Despite the resurgence of COVID-19, traffic remains steady, and as long as demand does not shift to overseas travel, clothing consumption demand is expected to steadily increase." She added, "The growth momentum in the new cosmetics business will take some time."