Amorepacific Group released its financial report today, indicating a decline in both revenue and operating profit. The group’s revenue decreased by 5.7% to KRW 963.3 billion ($714.1 million), and operating profit decreased by 12.7% to KRW 28.8 billion ($21.3 million). Subsidiary Amorepacific also experienced a decline in revenue, amounting to KRW 888.8 billion ($658.9 million), a decrease of 5.1%, and operating profit of KRW 17.3 billion ($12.8 million), a decrease of 8.2%.
Looking at the specific business sectors, the Luxury division recorded a third-quarter revenue of KRW 298.8 billion ($221.5 million), a year-on-year decline of 12%. Amorepacific stated that despite the decline in luxury cosmetics revenue due to reduced sales in new business and travel retail, the company achieved growth across various channels. Revenue from Korean domestic e-commerce, department stores, and Amorepacific exclusive stores all experienced positive growth. Amorepacific’s brand Sulwhasoo successfully elevated its brand value through strategic initiatives. They launched new products such as the “Ultimate S’line” and collaborated with the Amorepacific Museum of Art to hold the “Art and Tradition Night” event, emphasizing the brand’s heritage. The brands Hera and Primera achieved sales growth through brand activities and the multi-brand shop channel.
In the Premium segment, revenue in the third quarter amounted to KRW 111 billion ($82.3 million), a 4% year-on-year decline. Amorepacific stated that despite the global decline in e-commerce sales, they successfully mitigated the decline in high-end cosmetics revenue through the growth in domestic e-commerce and multi-brand shop channel sales. They achieved this by launching innovative products that attracted consumers and stimulated sales.
In terms of regional performance, in South Korea, Amorepacific’s revenue reached KRW 543.2 billion ($402.7 million), a year-on-year decline of 7.5%, and operating profit decreased by 34.5%. The company explained that the main reason for the domestic revenue decline was a double-digit decrease in travel retail sales, which accounted for 23% of the total domestic revenue. However, sales in the multi-brand shop channel saw a significant increase of 50%. Although overall online sales experienced a double-digit decline, Amorepacific achieved growth in pure domestic online sales.
In overseas business, the company reported revenue of KRW 317.7 billion ($235.5 million), a decrease of 3.6%, while operating profit decreased. Amorepacific attributed the decline in overseas business to a 13% decrease in Asian revenue, with China sales accounting for approximately 50% of Asian sales. In local currency terms, Amorepacific’s revenue in China declined by double digits. However, specific brands under the company achieved positive performance and growth in the Chinese market.
Sulwhasoo, one of Amorepacific’s brands, achieved strong initial sales for their newly launched product, the “Ultimate S Cream,” through effective online and offline marketing strategies. The brand also enhanced its competitiveness by introducing a new local brand ambassador, Bai Jingting, and strengthening customer engagement activities.
Laneige, another brand under Amorepacific, achieved steady sales growth in China by focusing on enhancing the marketing content of key products such as the “Perfect Renew 3X Serum” and launching the China-exclusive product, the “Pepta-Collagen Sleeping Mask.” The brand also collaborated with major Key Opinion Leaders (KOLs) by inviting them to Korea, further enhancing its brand influence.
Innisfree executed a brand revitalization campaign, improved its product and channel portfolio, and contributed to growth in the Chinese market. By reshaping its brand image and expanding its product range, Innisfree attracted customers and stimulated sales.
On a positive note, due to diversified channels of major brands, sales in the Americas experienced strong growth of 35%. Europe, the Middle East, and Africa also performed well, with revenue increasing by 41% driven by the success of Laneige.