DB Securities said on the 6th that d'Alba Global posted results that fell short of already lowered market expectations. It maintained a buy rating and cut the target price to 180,000 won from 200,000 won.
On a consolidation basis, d'Alba Global's third-quarter revenue and operating profit were 117.3 billion won and 16.7 billion won, respectively. This is far below the market expectation of 24.0 billion won. Researcher Heo Jena said, "With brand marketing expense for new product lines executed aggressively, the operating margin came in at 14.2%, down 4.9 percentage points from a year earlier."
The countries where sales were weaker than expected this quarter were Japan and Russia. Heo said, "In Japan, some sales gaps occurred during the process of shifting sales to offline," and "In Russia, orders were delayed as existing staff were reassigned to focus on developing the online channel and as the company negotiated timing for listing new products."
Heo added, "In the fourth quarter of this year, as the number of offline channels expands from the current 3,400 locations to around 4,000 by year-end, sales in Japan are expected to recover gradually," and "What was encouraging in these results was the growth in North America, with clear growth centered on Amazon and TikTok Shop."
Heo said, "Global sales diversification and an improving category mix are positive," but assessed that "this is also a period when investments to secure mid- to long-term growth drivers are proceeding simultaneously, making near-term earnings visibility lower."