Handsome's Q1 Operating Profit Down 32.9%... "Impact of Abnormal Weather"

First Quarter Revenue at 380.3 Billion Won
Down 3.4% Year-on-Year

Due to abnormal weather conditions, demand for transitional season products declined, leading to weak first-quarter results for Handsome this year.

On May 7, Handsome announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally tallied at 21.8 billion won, a decrease of 32.9% compared to the same period last year. During the same period, revenue fell by 3.4% year-on-year to 380.3 billion won. Net profit for the quarter was 18.4 billion won, down 22.4% from the previous year.

By sales channel, both online and offline sales declined. Offline sales dropped by 3.7% year-on-year, while online sales fell by 1.4%. In the first quarter, Handsome's sales channel breakdown was 77.0% offline, 22.7% online, and 0.3% other.

A Handsome official explained, "Sales and operating profit decreased due to a prolonged contraction in consumer sentiment caused by growing domestic and international uncertainties, as well as reduced demand for transitional season products resulting from abnormal weather conditions."