LG Household & Health Care stocks closed at 238,000 won the previous day, down 1.04%, marking an 86.55% decline from the 2021 peak of 1.77 million won. Analysts attribute renewed investor interest to the North America growth of haircare brand Dr.Groot, which now represents approximately 50% of the region's self-brand sales after expanding into all Costco stores and preparing to enter Sephora locations next month. Four major domestic securities firms forecast Q2 2026 consolidated revenue of 1.596 trillion won and operating profit of 71.5 billion won, representing a 30.57% year-over-year increase in profit despite flat sales, as duty-free channel performance stabilizes in the mid-80 billion won range. The market views the stock as having bottomed after years of underperformance, with the Q2 earnings announcement scheduled for the 29th expected to confirm the profit normalization trend.
LG Household & Health Care Stock Falls 86.55% From 2021 Peak
According to Yonhap Infomax current price screen (screen number 3111), LG Household & Health Care closed at 238,000 won the previous day, down 1.04% from the prior session. The stock reached 1.77 million won during the 2021 boom period, representing an 86.55% decline from that peak. After prolonged underperformance, market participants now focus on rebound catalysts rather than further declines, with assessments indicating the company entered a profit normalization phase in Q2 and the stock price has established a bottom.
Analysts Forecast Q2 2026 Operating Profit Up 30.57% Year-Over-Year
Four major domestic securities firms that published reports within the past month project Q2 consolidated revenue of 1.596 trillion won and operating profit of 71.5 billion won, according to Yonhap Infomax. This represents a 0.55% year-over-year decrease in revenue and a 30.57% increase in operating profit compared to the same period last year. Analysts identify North America operations as the key variable determining future stock direction.
Dr.Groot Brand Expands to 40% of North America Operations
North America operations historically underperformed due to weak results from acquired entities including Avon and Boinca. The business has recently shifted toward self-branded products, with self-brand proportion expanding from approximately 10% in the past to 40% currently, according to securities firms. Dr.Groot accounts for half of this self-brand revenue. The brand entered all North America Costco stores in H2 last year and will expand into Sephora online and offline stores starting next month, broadening sales channels and product lines.
Duty-Free Cosmetics Sales Expected Mid-80 Billion Won in Q2
The duty-free channel is assessed as having passed its bottom. Securities firms expect Q2 cosmetics duty-free sales to maintain levels similar to Q1 at the mid-80 billion won range. If duty-free market conditions do not deteriorate further, performance pressure on the beauty business segment is expected to gradually ease.
China Cosmetics Sector Grew 6.3% in H1 2026 Amid Marketing Cost Pressures
China's consumer recovery remains slow. According to China's National Bureau of Statistics the previous day, H1 2026 local consumer goods retail sales are projected at 24.8722 trillion yuan, up 1.3% year-over-year. The cosmetics segment grew 6.3%, performing relatively well, though it remains premature to declare a full-fledged consumption recovery. Cost burdens in the cosmetics division may increase due to China's major shopping festival 6.18 and marketing investments for the third-generation launch of The History of Whoo's flagship anti-aging line Cheongidan. LS Securities analyst Oh Rin-ah stated, "If large-scale promotions and new product launch costs are reflected simultaneously while China consumption has not strongly recovered, operating profit leverage relative to sales rebound may decrease."
Household Products and Beverage Segments Face Profitability Constraints
The household products and beverage segments are expected to show somewhat disappointing results. Profitability is projected to remain limited due to Homeplus store closures and continued raw material price pressures.
LG Household & Health Care will announce Q2 2026 earnings results on the 29th.
FAQ
What is LG Household & Health Care's current stock price compared to its 2021 peak?
LG Household & Health Care stocks closed at 238,000 won the previous day, down 86.55% from the 2021 peak of 1.77 million won.
What are analysts forecasting for LG Household & Health Care's Q2 2026 earnings?
Four major domestic securities firms forecast Q2 2026 consolidated revenue of 1.596 trillion won (down 0.55% year-over-year) and operating profit of 71.5 billion won (up 30.57% year-over-year).
How is the Dr.Groot brand performing in North America?
Dr.Groot now represents approximately 50% of LG Household & Health Care's North America self-brand sales, with self-brands expanding from 10% to 40% of total North America operations. The brand entered all North America Costco stores in H2 last year and will expand into Sephora stores starting next month.
