[E-Daily Reporter Shin Ha-yeon ] On the 9th, NH INVESTMENT & SECURITIES projected that HandsomeCorporation(020000)would continue to see improved earnings, driven by a recovery in consumption centered on the department store channel and an expansion in the proportion of full-price sales. The firm maintained its “Buy (BUY)” investment rating but slightly lowered the target price from 35,000 won to 34,000 won.

Jeong Ji-yoon, an analyst at NH INVESTMENT & SECURITIES, stated, “We forecast second-quarter consolidated revenue of 363.5 billion won and operating profit of 10.8 billion won, in line with consensus estimates,” adding, “This is attributable to the significant growth in sales through the department store channel in April and May.”

Analyst Jeong noted, “The domestic department store fashion category showed strong performance in April and May, with average sales growth rates of 14% for women’s suits, 23% for casual wear, and 14% for Namsung apparel,” adding, “HandsomeCorporation also maintained double-digit sales growth in May, but it is disappointing that the growth rate in the department store channel slowed somewhat in June compared to the previous month.” He continued, “Given the expansion of offline consumption this year, we need to slightly lower our expectations for online channel sales growth.”

He predicted that profitability would continue to improve. Analyst Jeong explained, “While the impact of clearing out overstock from some imported brands in their second or third year remains, profitability is expected to improve significantly year-over-year, driven by an increase in the proportion of sales at full price and growth in high-margin private-label sales.”

He also predicted that department stores would continue to benefit from polarized consumption trends in the second half of the year. Analyst Jeong noted, “As domestic consumption polarization deepens, the trend toward concentration in the department store channel is becoming more pronounced,” adding, “While luxury goods posted the highest sales growth rate within department stores during the early stages of the previous reopening phase, the sustained recovery in women’s and Namsung apparel means HandsomeCorporation is clearly set to benefit.” He went on to assess, “The current stock price, trading at a 2026 forward price-to-earnings ratio (PER) of 6.1, highlights its valuation merits.”