THE WHAT? LG H&H has returned to profitability in the first quarter of 2026 as the company shifts its focus away from China and accelerates expansion in North America under CEO Lee Sun-ju.
THE DETAILS LG H&H reported first-quarter revenue of KRW1.58 trillion and operating profit of KRW107.8 billion, recovering from a KRW72.7 billion operating loss recorded in the fourth quarter of 2025. While both revenue and profit declined year-on-year, the return to profit has been viewed positively by the market. Since taking over in September 2025, CEO Lee Sun-ju, formerly of L’Oréal, has reorganised the company’s brand portfolio and global strategy, with a focus on reducing reliance on China and expanding in North America. First-quarter sales in China fell 14%, while North American sales increased 35%. Premium scalp care brand Dr. Groot has also gained traction through TikTok marketing and is scheduled to launch in Sephora stores in the US in August. Industry sources additionally noted changes to the company’s internal culture, with a greater emphasis on bottom-up decision-making and operational flexibility.
THE WHY? The turnaround reflects LG H&H’s broader efforts to adapt to changing global beauty demand, reduce exposure to weaker Chinese sales and capture growth opportunities in North America and digital channels.
Source: Chosun
