1. J.ESTINA H1 2025 Performance: What Happened?

J.ESTINA reported revenue of ₩17.1 billion, operating profit of -₩100 million, and net income of ₩0 for the first half of 2025. While revenue decreased by 7.3% year-over-year, operating profit turned positive.

2. Reasons for Underperformance: Why These Results?

The primary reason for the sales decline is the weakened domestic consumption sentiment. With 95.7% of J.ESTINA’s revenue generated domestically, the company is highly susceptible to domestic economic conditions. Rising gold prices, leading to increased cost of goods sold, and a high SG&A ratio also hinder profitability. All core business segments, including jewelry, handbags, and watches, experienced declining sales.

3. Outlook and Investment Strategy: What’s Next?

J.ESTINA’s future performance hinges on the recovery of domestic consumption and the success of its new business ventures. Currently, a ‘Neutral’ investment rating is recommended. Investors should closely monitor future earnings trends, marketing effectiveness, and new business performance.

4. Key Investor Checkpoints

  • Strengthening online channels and optimizing target marketing
  • Improving cost and inventory management efficiency
  • Securing new growth engines