LG Household & Health Care will see sales drop off as the Chinese government imposes a ban on travel to South Korea, according to a report published by The Investor.
Analysts are predicting that the K-beauty stalwart will miss expectations on first quarter revenue, with its cosmetics division suffering in particular. Those watching the market are predicting a 5.5 percent rise in revenue and a 6.7 percent increase on operating profit for LG, thanks to lower sales through duty free stores, department stores and door-to-door sales – all dependent on Chinese tourists, according to the paper.
The dip is expected to continue into the second quarter. However, analysts noted that LG’s stock price is unlikely to suffer given the Korean manufacturer’s relatively low exposure in China itself.