LS Securities said on the 4th that APR Co. is showing steep sales growth in the United States. It kept its "Buy" rating and raised the target price to 340,000 won from 245,000 won. APR Co.'s closing price the previous day was 245,000 won.
LS Securities estimated that APR Co. will post fourth-quarter (October–December) revenue of 486.7 billion won and operating profit of 114.6 billion won this year. Those figures are up 99% and 189%, respectively, from a year earlier.
Cho Eun-ae, an analyst at LS Securities, said, "U.S. online sales, including sales from Amazon Prime Big Deal Days in October, are estimated to have logged the highest monthly sales on record," adding, "Because Black Friday (Nov. 20–Dec. 1) is a mega event with a long duration and deep discounts, record sales for an event period are expected."
Cho expects unusually strong results for U.S. offline sales as well. U.S. offline sales (Ulta Beauty) are understood to have ranked third in the skincare category for the month of October. In November, with an expansion of stock keeping units (SKUs) at stores, sales are expected to increase.
Cho said, "U.S. and Japan offline sales are expected to be able to grow stepwise every quarter through next year," and "With operating leverage from higher sales, the operating margin is likely to remain around 25% going forward."