[Alpha Biz= Reporter Kim Minyoung] NH Investment & Securities predicted about Handsome that "Q1 performance will be sluggish as expected, but it will be profitable from Q2." The investment opinion was 'buy' and the target price was 'maintain' 25,000 won.

"As of April, sales are gradually recovering, and we expect to generate new revenue sources such as the opening of the KITH store in Seongsu-dong in May and strong EQL online shopping," NH Investment & Securities said in a report on the 16th.

NH Investment & Securities estimated that Handsome's consolidated sales in the first quarter would fall 1% year-on-year to KRW 401.4 billion and operating profit would fall 34% to KRW 35.6 billion, below the consensus. It is estimated that sales growth by channel will decrease by 1% online and offline by flat. With a sales base in the first quarter of last year, the average growth rate of sales in each domestic department store category from January to February is flat at -3% for women's suits, +1% for women's casual and -2% for men's clothing.

"The operating profit ratio for the first quarter is estimated at 8.9%," said NH Investment & Securities. "This is due to a drop in demand for high-priced Hansum's own brands and increased sales of low-margin outlets due to sluggish consumption."

However, it is worth looking forward to easing the burden of the base of performance from the second quarter and installing new revenue sources. Hansum has signed an exclusive distribution contract with U.S. street brand "KITH" and is scheduled to open its store in May, and is expected to attract customers at home and abroad as it is located in Seongsu-dong, which has recently emerged as the No. 1 fashion destination for foreign tourists.

 

 

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