
Amorepacific saw a nearly 30 percent drop in its stock price this week, following the release of its second-quarter earnings, which fell significantly below market expectations.
According to the Korea Exchange, Friday, the stock price closed at 119,000 won ($87.18), a 1.24 percent decrease compared to the previous session.
When the market opened, the stock price experienced an initial rise, influenced by the U.S. stock market’s overnight rally. However, this slight rebound was not enough to dispel market skepticism about the firm. Just this week, the stock price plunged 25.49 percent.
This significant downturn was driven by an earnings shock announced on Tuesday. While the market had expected a second quarter operating 바카라게임 profit of 69.5 billion, the company reported only 4.2 billion won, citing decreased profits at the cosmetics division.
The poor performance is largely attributed to greater-than-expected losses in China, despite solid performance in the U.S. and Southeast Asian markets. Domestic operating profit also decreased by 59 percent, partly due to a decline in duty-free sales. Additionally, the anticipated contribution due to the acquisition of COSRX, a skincare brand, fell below market estimates.
“We are focusing on nurturing markets with high growth potential such as the United States, Japan, the United Kingdom and India, by establishing them as key global markets,” an Amorepacific official said.
“At the same time, we are committed to restructuring our Chinese operations and enhancing our competitiveness to achieve qualitative growth in the Chinese market.”