APR; Solid results, strong 2H outlook
신한투자증권 | 2026-08-06
Guidance raised on category, regional, and channel expansion
2Q26 review: Strong top-line growth lifts earnings
Valuation & risk: Maintain BUY as our sector top pick
Guidance raised on category, regional, and channel expansion
APR is delivering exceptionally strong company-wide sales growth, driven by record triple-digit sales growth in both the US and Europe. The company is diversifying its product lineup on Amazon US beyond skin care into the hair and body care categories. It has firmly established itself as the undisputed no.1 indie beauty company. While the base effect will become more challenging in the second half of the year, we expect APR to sustain unrivaled growth within the sector.
2Q26 review: Strong top-line growth lifts earnings
APR posted 2Q26 consolidated sales of KRW767.5bn and operating profit of KRW190.6bn, up 134% and 125% YoY, respectively, exceeding consensus estimates by 4% and 7%. Marketing expenses (Coachella event, etc.) and logistics costs (temporary, over KRW10bn) increased, but this was offset by the recognition of KRW13bn in tariff refunds. The higher sales also appear to have supported continued improvement in the sales mix. Cosmetics and home beauty device sales grew 185% and 24% YoY, respectively, with cosmetics continuing to drive growth. Sales declined 15% YoY in Korea but increased 265% YoY in the US, 380% YoY in Europe, and 325% YoY in other markets, with all overseas regions delivering record-high growth. The company continues to expand its product portfolio with Medicube pore pads, multi balm sticks, and body peel products.
APR had 7–9 products ranked in Amazon US’s Top 100 in 1Q26, rising to 16 in 2Q26 and remaining at 14–16 in July, indicating sustained momentum even after Amazon Prime Day. Offline sales through ULTA in the US also continued to post robust triple-digit growth. In addition, the company began recognizing sales from product launches at Target and Walmart. Air freight costs for shipments to Europe increased, and the related cost burden is expected to persist in 3Q26. The company plans to reduce logistics costs going forward. Marketing expenses are expected to stay at around 20% of sales for the full year.
Valuation & risk: Maintain BUY as our sector top pick
During yesterday’s conference call, APR announced revised 2026 guidance of KRW3tr in sales and a 24–26% operating margin, up from its previous guidance of KRW2.1tr and 25%. Our target price is kept unchanged at KRW540,000 as the change in estimates is minimal.
원본보기
2Q26 review: Strong top-line growth lifts earnings
Valuation & risk: Maintain BUY as our sector top pick
Guidance raised on category, regional, and channel expansion
APR is delivering exceptionally strong company-wide sales growth, driven by record triple-digit sales growth in both the US and Europe. The company is diversifying its product lineup on Amazon US beyond skin care into the hair and body care categories. It has firmly established itself as the undisputed no.1 indie beauty company. While the base effect will become more challenging in the second half of the year, we expect APR to sustain unrivaled growth within the sector.
2Q26 review: Strong top-line growth lifts earnings
APR posted 2Q26 consolidated sales of KRW767.5bn and operating profit of KRW190.6bn, up 134% and 125% YoY, respectively, exceeding consensus estimates by 4% and 7%. Marketing expenses (Coachella event, etc.) and logistics costs (temporary, over KRW10bn) increased, but this was offset by the recognition of KRW13bn in tariff refunds. The higher sales also appear to have supported continued improvement in the sales mix. Cosmetics and home beauty device sales grew 185% and 24% YoY, respectively, with cosmetics continuing to drive growth. Sales declined 15% YoY in Korea but increased 265% YoY in the US, 380% YoY in Europe, and 325% YoY in other markets, with all overseas regions delivering record-high growth. The company continues to expand its product portfolio with Medicube pore pads, multi balm sticks, and body peel products.
APR had 7–9 products ranked in Amazon US’s Top 100 in 1Q26, rising to 16 in 2Q26 and remaining at 14–16 in July, indicating sustained momentum even after Amazon Prime Day. Offline sales through ULTA in the US also continued to post robust triple-digit growth. In addition, the company began recognizing sales from product launches at Target and Walmart. Air freight costs for shipments to Europe increased, and the related cost burden is expected to persist in 3Q26. The company plans to reduce logistics costs going forward. Marketing expenses are expected to stay at around 20% of sales for the full year.
Valuation & risk: Maintain BUY as our sector top pick
During yesterday’s conference call, APR announced revised 2026 guidance of KRW3tr in sales and a 24–26% operating margin, up from its previous guidance of KRW2.1tr and 25%. Our target price is kept unchanged at KRW540,000 as the change in estimates is minimal.
원본보기
