K-beauty stocks stumble as strong won squeezes profits

What happened: K-beauty shares fell even as cosmetics exports hit a record, with APR dropping about 39 percent from its 52-week high on concerns that a stronger won will cut into earnings. Key numbers: Exports reached $11.1 billion in the first nine months, up 31.1 percent. Why it matters: Analysts at IBK Securities attribute the decline to worries over slower top-line growth from the strong won. Some see the selloff as overdone, while Cosmax and Kolmar Korea are expected to post operating profit jumps of roughly 60 percent.

K-beauty shares fell even as cosmetics exports hit a record, with APR dropping about 39 percent from its 52-week high on concerns that a stronger won will cut into earnings.

Analysts at IBK Securities attribute the decline to worries over slower top-line growth from the strong won. Some see the selloff as overdone, while Cosmax and Kolmar Korea are expected to post operating profit jumps of roughly 60 percent.