1. Q2 2025 Results: Significant Underperformance

Hansom reported KRW 338.1 billion in revenue, KRW 700 million in operating profit, and KRW 2.4 billion in net profit for Q2 2025. This represents an 11% decrease in revenue, a staggering 97% drop in operating profit, and an 87% decline in net profit compared to the previous quarter.

2. Factors Behind the Decline: A Confluence of Headwinds

This underperformance is attributed to a confluence of factors, including a sharper-than-expected decline in consumer spending, a deepening global economic downturn, fluctuations in raw material prices and exchange rates, a lack of synergy from the Hansom Life & merger, sustained interest rate hikes, weakened investor sentiment, and increased shipping costs. As a high-end brand, Hansom was particularly vulnerable to the economic slowdown.

3. Future Outlook and Investment Strategies: Uncertainty with Some Positives

While the outlook for Hansom remains uncertain, there are some positive factors to consider. The merger with Hansom Life & offers potential for long-term growth, and the launch of the new brand ‘Oera’ generates some optimism. Key factors to consider for successful investment include predicting the timing of global economic recovery, anticipating when merger synergies will materialize, analyzing evolving consumer trends, managing risks associated with external factors like exchange rates and raw material prices, and analyzing competitor activities.

4. Action Plan for Investors

  • Maintain a long-term investment perspective rather than reacting to short-term fluctuations.
  • Continuously monitor key factors such as the timing of economic recovery, the realization of merger synergies, and the performance of the new brand ‘Oera’.
  • Implement robust risk management strategies to mitigate unforeseen challenges.