South Korean Amorepacific's profit plummeted 93.7% to $6.43m in Q3

Domestic sales fell amidst weaker international tourist arrivals.

South Korean beauty products business Amorepacific Group's net profit plunged 93.7% YoY to $6.43m (KRW7.3b) in Q3 from $98.87m (KRW112.3b) in Q3 2019, the company announced in a regulatory filing. Revenue fell 23% to $1.06b (KRW1.21t) over the same period.

Its domestic travel retail sales in South Korea declined due to a fall in the international tourist arrivals. Overseas travel retail sales grew by double digit. Other offline channels sales also declined by double-digit.

Meanwhile, online sales continued to record strong growth by strengthening relationships with digital platforms such as Naver, 11st, etc.

Overseas, its stores were temporarily closed or were operating with shortened operation hours in some regions. Thus, offline sales declined due to strengthened social distancing measures and decline in tourist arrivals.

Domestically, its luxury and premium brands saw strong sales growth in online channels, but dales declined in major offline channels such as travel retail, door to door and department stores.

Meanwhile, its Daily Beauty brands saw overall sales growth led by its ‘Mise-en-scène’, ‘Happy Bath’, ‘Illiyoon’. Online sales also continued strong growth by ramping up digital platform marketing activities.

Overseas, the company saw a strong sales growth in China of over 80%, whilst sales in North America fell due to the restructuring of offline channels. In Europe, despite revenue growth of Laneige from strong sales of major products, Goutal Paris revenue declined due to a drop in tourist demand.