PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩250 per share · Prices as of the 2026-10-02 close
Clio posted a record quarterly operating profit in Q2 2026 on simultaneous improvement in cost of sales and SG&A ratios, but annual revenue remains below the 2024 peak amid a low-growth phase.
Q2 2026 revenue reached KRW 86.8 billion with operating profit of KRW 11.6 billion (13.4% margin), a record quarterly operating margin.
FY2025 annual revenue fell 6.4% to KRW 328.9 billion from KRW 351.4 billion in 2024, while the operating margin declined from 7.0% to 5.0%.
Owner-attributable net profit summed over the latest four quarters (Q3 2025-Q2 2026) reached KRW 29.3 billion, more than double the KRW 13.2 billion recorded for full-year 2025.
North American sales grew 58% year-on-year in Q2 2026, and following entry into Ulta Beauty and Olive Young US, the company plans to expand into Nordstrom and Costco in the second half.
Domestic sales accounted for 53% of the total, led by the H&B channel, while overseas growth was concentrated in North America and Greater China, with Asia including Japan and Southeast Asia relatively weaker.
Founded in 1997 and listed on KOSDAQ in 2016, Clio is a Korean color cosmetics specialist that built its competitiveness around its flagship brands Clio and Peripera.
The company has since diversified into skincare brand Goodal and Dermatory, hair care brand Healing Bird, and health-supplement brand TrueALX, expanding into a broader beauty portfolio.
In Q2 2026, domestic sales of KRW 45.7 billion accounted for 53% of total revenue, driven by the H&B channel where Clio's 'Kosht Edition' Pro Eye Palette and the renewed Peripera 'Mood Glowy Tint' led sales.
Overseas sales of KRW 41.1 billion made up 47% of revenue, comprising KRW 9.1 billion in North America, KRW 10.6 billion in Greater China, KRW 3.5 billion in Europe/Middle East/Africa, and KRW 14.9 billion across Asia including Japan and Southeast Asia.
Manufacturing is outsourced to OEM/ODM partners such as Cosmax, C&C International, and Kolmar, allowing the company to focus resources on product development and marketing.
In the domestic color cosmetics market, Clio competes against large players such as APR, Amorepacific, and LG Household & Health Care alongside a growing number of indie brands. Overseas, it competes on channel and pricing with US/Europe-focused indie brands such as APR's Medicube and Chosun Beauty (Beauty of Joseon).
Distribution channels are diversified across H&B stores, e-commerce, home shopping, and US platforms such as Amazon, with home shopping recently restructured toward data broadcasting from live broadcasting.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩82.1B | ₩3.5B | 4.3% |
| 2025Q3 | ₩83.8B | ₩4.7B | 5.6% |
| 2025Q4 | ₩80.6B | ₩7B | 8.7% |
| 2026Q1 | ₩78.3B | ₩5.8B | 7.4% |
| 2026Q2 | ₩86.8B | ₩11.6B | 13.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩272.5B | ₩17.9B | ₩10.1B | 6.6% | 5.3% | 28.1% |
| 2023 | ₩330.6B | ₩33.8B | ₩27.3B | 10.2% | 12.8% | 30.8% |
| 2024 | ₩351.4B | ₩24.6B | ₩27.2B | 7.0% | 11.6% | 26.3% |
| 2025 | ₩328.9B | ₩16.4B | ₩13.2B | 5.0% | 5.4% | 24.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Clio's annual results peaked in 2023 with revenue of KRW 330.6 billion and operating profit of KRW 33.8 billion (10.2% margin), then declined thereafter.
In 2024, despite revenue rising to KRW 351.4 billion, operating profit fell to KRW 24.6 billion (7.0% margin), and in 2025 revenue dropped 6.4% to KRW 328.9 billion while operating profit fell further to KRW 16.4 billion (5.0% margin).
Owner-attributable net profit similarly declined from KRW 27.3 billion in 2023 and KRW 27.2 billion in 2024 to KRW 13.2 billion in 2025, more than a 50% drop.
On a quarterly basis, however, the trend has clearly improved: the operating margin rose from 4.3% in Q2 2025 to 5.6% in Q3, 8.7% in Q4, then 7.4% in Q1 2026 before jumping to 13.4% in Q2 2026.
In Q2 2026, the cost-of-sales ratio fell from 54.0% a year earlier to 48.6%, and the SG&A ratio dropped from 41.7% to 38.0%, with sales commissions in particular falling 30.7% as live home-shopping broadcasts were scaled back, contributing significantly to the margin recovery.
As a result, owner-attributable net profit summed over the latest four quarters (Q3 2025-Q2 2026) reached KRW 29.3 billion, already well above the full-year 2025 figure of KRW 13.2 billion.
The combined revenue and profit slowdown in 2025 is understood to reflect intensified domestic color cosmetics competition alongside a temporary export gap caused by delayed MoCRA certification in the US market, an issue the company has stated was subsequently normalized.
Overall, earnings appear to have passed a 2025 trough and entered a recovery phase in 2026 centered on cost and expense efficiency.
Korean cosmetics exports set a new record in 2025, and in the first half of 2026 exports reached USD 7.0 billion, up 27.3% year-on-year for the largest half-year figure on record.
Of this, exports to the United States totaled USD 1.45 billion, or 20.7% of the total, growing 41.5% and cementing the US as the top single market for a second consecutive year.
Shinhan Investment Corp, in an industry report published in May 2026, noted that the cosmetics sector's price-to-earnings ratio based on 2026 expected earnings remains below 20x, about 50% lower than in 2023.
In the US market, lower entry barriers via Amazon have made it common for K-beauty brands to first build an online presence before expanding to offline retailers such as Sephora, Ulta, and Costco.
Competition among indie beauty brands is intense, with APR's Medicube emerging as the single largest brand by Amazon beauty sales share at 14.1% in Q1 2026.
China remains a headwind for companies with high dependence on the market amid strong local brands and intensified domestic competition, while it can present a relative opportunity for companies like Clio that pursue growth through emerging channels such as Douyin.
Against this backdrop, Clio is pursuing a strategy of broadening its category mix from color cosmetics into skincare, hair care, and inner beauty, while diversifying geographically toward North America, Japan, and Southeast Asia on a channel structure with relatively low China dependence.
Clio has stated that in the second half it will strengthen its core brands—Clio, Peripera, and Goodal—centered on the domestic H&B channel while expanding distribution overseas focused on North America, Europe, and China.
In North America, building on strong Amazon eye-category sales and entries into Ulta Beauty and Olive Young US, the company plans to add Nordstrom and Costco in the second half.
In Europe, it plans to secure new online and offline distribution across Eastern Europe via Notino, the region's largest beauty e-commerce platform, in the second half.
In Greater China, Goodal's green tangerine line has driven sales growth centered on Douyin, and the company has said it will continue expanding its skincare brand mix.
The company previously moved to acquire a new logistics center using funds raised through a convertible bond issuance after utilization at its Anseong logistics center approached saturation, aiming to expand logistics capacity to support global export growth.
Domestically, the company is expected to maintain its cost-efficiency stance from reduced live home-shopping broadcasts and a shift to data broadcasting while continuing to grow sales through H&B and online channels.
Hyundai Motor Securities, in a report published in June 2026, stated it maintained a Buy rating on Clio but lowered its target price from KRW 16,000 to KRW 14,000, citing intensified domestic and overseas competition, restructuring of low-margin channels, and corporate reorganization effects.
Overall, the extent of second-half growth will depend on how much the new overseas channel entries translate into actual sales gains, and whether the profitability gained from cost efficiency can be sustained.
Given the clear profit recovery seen over the latest four quarters, Clio appears to trade at multiples lower than those observed during its earlier earnings-slowdown phase.
Its price-to-book ratio sits below net asset value, which could be interpreted either as the market not yet fully reflecting the recent pace of profit recovery, or as reflecting a cautious view on future growth.
On the dividend side, the company continues to pay a cash dividend, though the yield is not notably above the sector average. From a balance-sheet perspective, the debt ratio remains stable in the mid-20% range, suggesting the valuation gap is unlikely to stem from financial risk.
That said, on an annual basis profits slowed after peaking in 2023 and have only recently shown signs of recovery, making the durability of this recovery across coming quarters a key variable for how the valuation is interpreted going forward.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
In Q2 2026, both the cost-of-sales ratio and SG&A ratio declined simultaneously, lifting the operating margin to 13.4%. If the reduction in sales commissions from scaled-back live home-shopping broadcasts proves structurally durable, profit leverage could continue even without strong revenue growth.
The fact that net profit accumulated over the latest four quarters already exceeds full-year 2025 net profit supports this trend.
North American sales grew 58% year-on-year in Q2 2026, and following entry into Ulta Beauty and Olive Young US, entry into Nordstrom and Costco is planned for the second half. In Greater China, Goodal's green tangerine line is driving sales via Douyin.
If entry into large offline retail networks translates into actual sales, the overseas sales mix could expand further.
Clio's overseas sales are relatively evenly distributed across North America, Japan, Southeast Asia, and Europe, giving it comparatively low dependence on any single country. This can act as a relative buffer compared with competitors more heavily exposed to China risk. In Europe, the company also plans to expand into new regions via Notino in the second half.
FY2025 annual revenue fell 6.4% to KRW 328.9 billion from KRW 351.4 billion in 2024. This is understood to reflect brand aging and intensified competition in the domestic color cosmetics market alongside the rise of new indie brands. While quarterly profit has recovered, top-line growth itself has yet to show a clear rebound.
With utilization at the Anseong logistics center exceeding 90%, the company raised funds via convertible bond issuance to acquire a new logistics center. If inventory assets and investment costs rise simultaneously during a period of stagnant revenue, short-term financial strain could increase. Indeed, finished-goods inventory has continued to rise since 2023.
There has been a precedent in which delayed MoCRA certification in the US caused a temporary sales gap. The company has stated the issue has since normalized, but the possibility of similar temporary sales disruptions cannot be ruled out if regulatory changes recur across different countries.
In the domestic color cosmetics market, both large incumbents and new indie brands are intensifying competition. Failure to defend share in the core H&B channel could pressure both revenue and margins. If new-product marketing spend rises, the recently improved SG&A ratio could deteriorate again.
Changes in US cosmetics certification requirements or tariff and trade policy could directly affect export volumes and schedules. In new markets such as Europe and Southeast Asia, differing regulatory and certification procedures across countries could also cause unexpected delays during initial market entry.
Logistics center investment and inventory expansion continue in response to global channel growth. If revenue growth falls short of expectations, the increased inventory and fixed-cost burden could negatively affect profitability.
Q3 2026 earnings are due to be announced. Investors should check whether the cost and SG&A efficiency seen in Q2 continues into Q3, and whether early results from new overseas channels (Nordstrom, Costco) are reflected in sales.
This is a point to check progress on the Notino entry and Eastern European distribution buildout in Europe, and whether the new-region entry translates into a larger overseas sales mix.
It is necessary to check whether sales growth of skincare products such as Goodal's green tangerine line via the Douyin channel in Greater China continues, and whether sales in Japan and Southeast Asia show signs of recovery.
Full-year 2026 results are expected to be finalized and disclosed around this time; the key items to verify are whether the quarter-by-quarter margin improvement translates into an annual recovery and whether revenue growth turns positive.
After a combined slowdown in revenue and profit in FY2025, Clio has shown a clear profit recovery in the first half of 2026, driven mainly by improvements in the cost-of-sales and SG&A ratios.
Notably, the Q2 2026 operating margin of 13.4% was a record for a single quarter, and net profit accumulated over the latest four quarters has already surpassed the full-year 2025 figure.
However, since much of this profit improvement stems from cost efficiency, whether an accompanying recovery in the revenue growth rate follows will be key to gauging the sustainability of earnings going forward.
Overseas, growth in North America and Greater China along with planned entries into Nordstrom, Costco, and Notino in the second half could act as catalysts for top-line expansion, while intensified domestic color cosmetics competition and the financial burden from logistics center investment remain offsetting factors.
Views among brokerages are also mixed; Hyundai Motor Securities maintained a Buy rating in June 2026 while lowering its target price.
Ultimately, it will be important to monitor both the durability of the profit recovery and the actual sales contribution of new overseas channels in results from the third quarter onward.
Report written 2026-09-05 · Data as of 2026-09-04
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