LG Household & Health Care shares surged more than 18% in early trading following strong second-quarter results and upgraded price targets from analysts.
As of 9:41 a.m. on July 30, the company’s stock was trading at 311,000 won, up 48,000 won (18.25%) from the previous trading day, according to the Korea Exchange.
On July 29, LG Household & Health Care reported consolidated sales of 1.656 trillion won and an operating profit of 102.8 billion won for the second quarter of 2026. Compared to the same period last year, sales increased by 3.3%, while operating profit rose by 87.5%. Net profit reached 77.6 billion won, marking a 101.2% increase year-on-year.
The improvement in performance was driven by the beauty segment, which saw sales rise to 818.4 billion won, a 3.9% increase from the previous year, and an operating profit of 44.4 billion won, marking a return to profitability. The Home Care and Daily Beauty (HDB) segment also reported sales of 377.6 billion won and an operating profit of 22.3 billion won, reflecting increases of 5.5% and 23.1%, respectively.
In international markets, North American sales surged by 47.3% year-on-year to 205.8 billion won, surpassing sales in China for the first time, which totaled 176 billion won. Overall overseas sales reached 584.5 billion won, a 12.6% increase.
However, it is important to note that this performance includes a one-time gain from U.S. customs refunds. The company stated that even without this factor, profitability improved due to the growth of premium brands and expansion in the North American market.
Following the earnings announcement, analysts provided positive assessments. Son Min-young, a researcher at KB Securities, noted, "The cosmetics segment has entered a significant turnaround phase, and the revenue growth centered on the high-growth North American region is leading to improved profits. It is time for a reevaluation of the stock price."
* This article has been translated by AI.
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