South Korean beauty conglomerate Amorepacific has recorded a 15.6 percent year-on-year drop in sales for its third quarter of this year, with operating profit plummeting 62.6 percent to US$13.2 million.
In its home market, revenue was down 18.6 percent with operating profit dropping 49.8 percent. Despite a 10 percent increase in online sales, the domestic performance failed to improve as revenue in the travel retail channel declined by a double-digit rate.
Meanwhile, sales in China, which usually accounts for about 50 percent of the company’s Asian sales, declined by 40 percent due to “offline channel restructuring of major brands and the slowdown in cosmetics consumption”. The overseas business’s loss of $6.5 million was attributed to the contraction in China sales, resulting from the country’s zero Covid policy of rolling lockdowns and movement restrictions.
In contrast to China, sales in other international markets saw improvement. Elsewhere in Asia, revenue jumped by around 20 percent due to the reopening of Southeast Asian borders. The group saw sales in North America and Europe surge by 97 percent and 60 percent respectively due to steady growth of its major brands.
Amorepacific has been diversifying its international business, which previously heavily relied on China, rapidly expanding its portfolio in North America during the past year. In September, the group acquired the American beauty brand Tata Harper as a stepping stone for its regional expansion plan.