CLIO Cosmetics, a KOSDAQ-listed company, recorded poor performance in the first quarter of this year, leading to a decline in its stock price in early trading on the 15th.
As of 9:32 a.m. on this day, CLIO Cosmetics is being traded at 16,470 won, down 2,390 won (12.67%) from the previous trading day.
CLIO Cosmetics announced after the regular trading session the previous day that its operating profit for the first quarter decreased by 86.5% year-on-year to 1.1 billion won. During the same period, sales amounted to 82.3 billion won, and net profit was 2.7 billion won, marking decreases of 11.4% and 73.1%, respectively.
Negative outlook from securities firms continued. Hanwha Investment & Securities issued a report on this day, downgrading CLIO Cosmetics' target stock price from 35,000 won to 21,000 won and changing the investment opinion from 'buy' to 'neutral.'
Han Yoo-jung, a researcher at Hanwha Investment & Securities, noted, "As new brands continue to enter the domestic market, the burden on the base of the domestic health and beauty (H&B) channel, which contributes the most to sales, is substantial. While recovery is expected from the first quarter low, uncertainty remains in the short-term earnings flow."