Securities firms forecast that HANDU, having passed the profitability burden from clearing carryover inventory (goods carried over from the previous year), could enter a full-fledged profit improvement phase starting in the fourth quarter of this year. The expansion of new imported brands such as Skims is also cited as a key variable that will determine future growth.

■ NDR for Institutional Investors...Attention Focused on Timing of Profitability Normalization

According to Samsung Securities, HANDU held an NDR (non-deal roadshow) for domestic institutional investors from the 13th to the 14th. At the session, investors' attention reportedly focused on the timing of profitability normalization following the clearance of carryover inventory and the sustainability of growth.

■ Inventory Burden Through Q3...Coinciding with Q4 Peak Season Effects

Samsung Securities projected that the impact of carryover inventory clearance will continue through the third quarter. As discount sales and inventory-related cost burdens persist during the process of clearing existing inventory, the analysis is that some time is needed for short-term profitability recovery.

However, from the fourth quarter onward, it was suggested that profit improvement could begin in earnest as inventory-related burdens ease while the peak season effects of the apparel industry coincide. The lower the proportion of carryover products, the lower the pressure on margin erosion from discount sales can become, making profitability normalization a key point for future performance.

■ New Imported Brands Including Skims, a Variable for Expanding Growth Drivers

On the growth front, the expansion of new imported brands is emerging as a variable. Based on the competitiveness of its existing own brands, HANDU is working to secure new growth drivers by broadening its portfolio of overseas brands such as Skims. The expansion of imported brands is evaluated as a positive factor in that it can diversify the existing business structure and secure new consumer segments. How quickly new brands settle in the domestic market and increase their actual contribution to sales and profits is expected to be the key to judging growth potential.

■ Speed of Inventory Resolution Will Be the Watershed for Second-Half Performance

Ultimately, the analysis is that HANDU's second-half performance trend depends on how quickly the carryover inventory burden, which will continue through the third quarter, is resolved, and whether the fourth-quarter peak season effects translate into actual profitability improvement. If the performance of new imported brands is added to this, there is also a possibility that mid- to long-term earnings recovery will gain momentum.

[This article is reference material for investment decisions and is not intended to recommend the purchase or sale of specific stocks or to guarantee investment returns. Securities firms' forecasts may change depending on future performance and market conditions. This article was written with AI assistance.]