Good morning. Thank you for joining APR's earnings conference call. Today, APR will review its Q2 performance, followed by a Q&A session with the participants. If you have a question, please press star and one on your phone. Now, I'd like to invite APR for 2026 Q2 earnings presentation.
Good morning, everyone. Thank you for joining us today. I'm Jae-ha Shin, Executive Vice President of APR, and I'd like to welcome you to our second quarter 2026 earnings call. Today, I'll review our second quarter performance, followed by a Q&A session. Before we begin, please note that the financial results discussed today are preliminary and may change as we complete the external review process. Our discussion may also include forward-looking statements based on current expectations. These statements involve risks and uncertainties, and actual results may differ materially. I'll now begin with an overview of our second quarter results. Page three highlights our quarterly revenue trends. Second quarter consolidated revenue reached a record KRW 768 billion. After approaching KRW 600 billion last quarter, we surpassed KRW 700 billion for the first time, marking another consecutive quarterly high.
The growth was led by the strong overseas momentum in North America and Europe, supported by the new SKU sales and our expansion into U.S. offline and European online channel. Page four provides an overview of our second-quarter financial performance. We delivered record quarterly revenue and operating profit. Consolidated revenue increased 134% year-over-year to KRW 768 billion, while operating profit grew 135% to KRW 191 billion, resulting in an operating margin of 24.8%. Page five breaks down our second quarter revenue by business segment. The revenue from our cosmetic and beauty segment increased 186% year-over-year to KRW 648 billion. This marked the sixth consecutive quarter of triple-digit growth and another quarterly record, with revenue surpassing KRW 600 billion for the first time. The growth remained well-balanced, supported by solid demand for our core products and increasing contribution from newer categories.
During Amazon Prime Day in the U.S., 11 of our products ranked among the top 100, reaffirming the strength of our best-selling portfolio. We also participated in Prime Day in Europe for the first time, with an average of more than seven products ranking the top 100 across the U.K., France, Spain, Italy, and Germany. Our newer categories are also showing encouraging momentum. The Collagen Glow Sunscreen, for example, surpassed 400,000 units in cumulative sales within eight months of launch, demonstrating its potential to become another key product. The revenue from our home beauty device segment increased 24% year-over-year to KRW 112 billion. The demand remains solid in our core markets, while geographic and channel expansion supported growth in newer markets. During the quarter, we launched Booster Glow, powered by LDM ultrasound technology.
By adapting technology used in professional aesthetic equipment for at-home use, we further strengthen our home beauty device portfolio. Lastly, the revenue from others businesses declined 31% to KRW 7 billion, reflecting the continued downsizing of non-core operations. Page six provides an overview of our regional revenue. Beginning this quarter, we are reporting revenue across five regions, Korea, North America, Europe, Asia, and others. This change provides greater visibility into North America and Europe, now key markets for APR. The prior year figures have been recast on the same basis for comparability. The second quarter overseas revenue increased 178% year-over-year to KRW 704 billion, surpassing KRW 700 billion for the first time and setting another quarterly record. The overseas revenue accounted for 92% of total revenue, up from 77% a year earlier. The growth was led by the continued strength in North America and exceptional momentum in Europe.
Together, the two regions represented 68% of total revenue. I will discuss each region in more detail on the next page. Let me now provide more detail on our regional performance. In the second quarter, we delivered strong growth in North America and Europe, while maintaining solid momentum across Asia and other emerging markets. Starting with Korea, revenue was KRW 63 billion. The year-over-year decline mainly reflected the continued downsizing of our non-core businesses. The North America revenue increased 265% year-over-year to KRW 376 billion. The online growth remains strong, supported by an expanding portfolio of best-selling products. The Medicube brand, number one in Amazon beauty category in both the first and second quarters. During the Prime Day at the end of June, Medicube also became the most searched term across all categories on Amazon, reaffirming the strength of the brand in the U.S. online market.
We also expanded our offline presence through major retailers, including Ulta Beauty, Target, and Walmart. Going forward, we will build on our strong online demand while broadening offline distribution and consumer reach. Europe delivered another exceptional quarter, with revenue increasing 380% year-over-year to KRW 145 billion. Our entry into online channels across five major European markets has established a strong platform for expansion, with revenue reaching nearly 5x the prior year level. Europe is emerging as another major driver of our global growth. We plan to strengthen brand awareness and sales in our existing markets, while entering additional countries and pursuing opportunities with major offline retailers. In Asia, the revenue increased 50% year-over-year to KRW 121 billion. Lastly, revenue from others region increased 325% to KRW 62 billion, supported by a growing B2B demand and expansion across the Middle East and Latin America.
Page eight highlights the progress we made in expanding our global presence during the first half of 2026. Starting with North America, revenue increased 261% year-over-year to KRW 648 billion. The region has become a core market where our global growth model was first successfully proven at scale. Building on the channel expertise and brand expansion capabilities we developed in North America, we have been able to accelerate our growth in Europe. The revenue in Europe increased 363% year-over-year to KRW 229 billion. The Growth Playbook we established in North America and Europe is also beginning to gain traction across new markets, including Middle East and Latin America. Revenue from others region increased 235% year-over-year to KRW 99 billion, demonstrating encouraging early progress in these markets.
Going forward, we plan to replicate the experience and capabilities we have built in North America and Europe across additional regions, including the Middle East and Latin America, further strengthening the foundation for our global growth. Please refer to page nine for our summarized consolidated financial statement. The summary is provided for reference purposes only. Additionally, let me briefly update you on our EBD and skin booster businesses. For EBD, we have received Korean regulatory approval, clearing a key milestone towards a domestic launch by year-end or early next year. Feedback from leading medical professionals has been encouraging, and we are now building out our sales organization and preparing manufacturing for commercialization. For skin boosters, our PN-based product has received Class 2 medical device certification and also export authorizations in Korea, establishing the foundation for overseas sales.
The initial exports have begun with a broader rollout expected from the third quarter, led by Japan and the Middle East. We are also preparing a Class IV approval applications for the Korean market, with more meaningful domestic revenue growth targeted for 2028 onwards. Finally, let me address our full year 2026 guidance. We began this year with a revenue target of KRW 2.1 trillion and operating margin of approximately 25%. Since then, the growth has accelerated significantly, led by the U.S. and Europe, and also supported by strong online and offline channel expansion. Reflecting this momentum, we are raising our full-year revenue guidance to approximately KRW 3 trillion, while maintaining an operating margin outlook of 24%-26%. We remain focused on delivering strong growth with solid profitability. This concludes APR's earnings call for the second quarter of 2026.
The Korean presentation is now coming to an end. We will now move on to the Q&A session. Thank you.
We will now like to have a Q&A session. If you have a question, please press star and one on your phone. If you'd like to cancel your question, please press star and two on your phone. The first question is from Lee Min-ji from CD Securities. Please go ahead.
Thank you for this opportunity and congratulations on the successful Q2. I have two questions. First of all, I'd like to get some color on Q3 performance. In Q2, we had the Prime Day effect from Amazon. I'd like to understand what your expectation is for Q3 performance going forward. Secondly, the impact of tariff refunds from the U.S., as well as the transition to IFRS 18, I believe there has been some impact on your margin. Nevertheless, at the cost side, I believe that you were able to save some. Can you provide more details? Thank you.
Yes, rather than providing color on Q3, I'd like to give you some color on the second half performance. As for Q3, we don't have much visibility to Q3 performance. We will not be able to provide you with aggressive figures for Q3 because there are no special events for Q3. The Amazon Prime Day was rescheduled to the second quarter. The biggest event that we anticipated in the middle of the year would normally be scheduled in October, November, and December. Nevertheless, we continue to generate revenue, and we see a continued revenue growth trend over the markets. Overall, in Q3 and Q4, I believe that KRW 1.7 trillion of revenue is expected, KRW 2.7 trillion. For the U.S. and Europe, we see a QoQ growth in our revenue. In Europe, led by the U.K., we see a big growth in revenue.
We also work on Germany, France, Italy, and Spain. In these markets, we see our rankings continue to go up, resulting in a growth in our revenue performance. When it comes to our Q3 performance outlook, I believe that it will be similar to our performance in Q2. So far, we have had aggressive growth on a QoQ basis. In Q3, we have some uncertainty and lack of visibility because we don't have a major event or promotional event. We will have to rely on organic growth. It is difficult to predict accurately, but our performance in Q3 is pretty good. Including Q4, in terms of our second-half performance, we expect good results.
Moving on to the impact of tariff refunds from the U.S., right now, about KRW 13 billion of tariff refunds was recognized already, and it's not a total amount, but partial refund was made. In the second half of the year, as well as early next year, we'll be able to receive tariff refunds in a significant amount. As for the amount, I won't be able to give you a specific number. Nevertheless, you mentioned about IFRS 18 recognition. For the second quarter, there was no big impact in terms of positive impact, but we will communicate separately through an IR channel. We also saw an increase in one-off expenses, including logistics costs, and it is included in COGS, so it was recognized as part of inventory expense. In terms of cost, we have air freight, and air freight rates have been going up quite significantly.
We had incurred some major air freight expenses in the second quarter, including KWR 10 billion , and there are several reasons why. First of all, we have had this Amazon Prime Day, which was scheduled in June, and we had to meet the cutoff deadlines. To do so, we had to make huge shipments through air freight. There is an increase in sales in Europe, and to respond to this demand, majority of the shipments are made through air freight. The major reason is that there are disruptions in ocean freight. We are looking for alternative sea routes, but nevertheless, to provide stock to Europe, we will have to continue to utilize air freight. Air freight expense is expected for the third quarter as well.
For the U.S., we have some safety stock already in place, and as I mentioned, there is no major promotional event scheduled for Q3. Inventory stock forecast is going up, so gradually, air freight burden will decrease. In addition, Coachella festival as well as other one-off marketing expenses were made, and that is why we did not see a significant growth in operating pocket margin. It is similar to the previous quarters.
Thank you very much. We will take the next question. The next question will be raised by Mr. Jung Ji-yoon from NH Securities. Please go ahead with your question.
Yes. Do you hear me?
Yes, we do.
Thank you very much for taking my question. I have two questions. First is about the cost. Of course, it was explained earlier in the presentation, so in terms of the transportation cost as well as the commissions and also the promotions and the ad spends, I wonder how much they were. Those costs, will they be more stabilized in Q3? The second question is, at the revenue side, we see that in the U.S., the revenue is stronger than expected. What is the share between the offline and also in terms of the other channels as well?
Thank you very much.
I will have to double-check on some of the numbers. First of all, about the cost. The COGS went up by 20.8%, the sales commission went up by 18.6%, the ad spend was 22.5%, and the transportation was 7.7%. The transportation cost is actually a bit higher because the COGS also includes part of the transportation. When we export to Europe and the U.S., then they would be first recognized as inventory, and then when they are sold, then they will be recognized as COGS. At this time, the air freight is increasing the most rapidly, and part of that is actually recognized as COGS at this time. We see that the ad spend has gone up a bit, and especially in Q2, we were more aggressive in our sales growth.
We mentioned this at every call. Our biggest focus right now is on growing our sales. Of course it was one time cost, but Lisa was in Coachella, and we are also the main sponsor in Coachella and also the promotion event with Kim Kardashian and also some other events as well. Because of that, these are some of the examples of our more aggressive ad spend. Having said that, the aggressive ad spend, I do not believe that it is going to increase much higher than this because our expectation is to be around 20%. The sales commission, it is not much of an increase from the past. Our biggest consideration at this time would be about the stock shortage, and that means that we also need to manage the supply chain more effectively.
Out of the sales, we also need to make sure that there will be no gaps in the sales. That is why we rely on air quite heavily. In the U.S., there had been severe stock shortages, but now coming into Q3, we see that the stock shortage is considerably easing. For the U.S. market, at least, we do believe that there is now a decline in the usage of air freight. Now, in order to meet the Prime Day, there had been some products where there had been stock shortages, and we are still using the air freight for those. For the European market, was at the Suez Canal. Because the Suez Canal is also blocked, now it is taking double the time over the ocean to reach Europe.
Now we are also getting more revenue out of Europe, and yes, that is, of course, a good thing. In order to meet the demand, the very quickly rising demand, we are using even more air freight for Europe, more so than the U.S. We do believe that going into Q3 as well, we will have to still rely on the air freight for Europe. From Q4 and on, now because there is the safety stock to be built up, we believe that that is also going to ease somewhat.
About the offline channel mix, allow me to respond to this question. Yes, this is Cha Tae-Young from the communications office, and let me respond to the online and offline mix in the U.S. market. As you would know, there was some regional reclassification.
Some of the cross borders, they have been also reclassified. Based on this new standard, in the North American sales, about 80% was online and 20% offline. Based on the altered criteria, in the first quarter last year in the U.S., the offline was 18%, but this time it was 23%, so there was increase by about 5 percentage points. The sell-through trend, it is quite steady, and I cannot give you the specific data at this time, but in the channels where we have presence, yes, we see that it is quite steady, and also the sell-through trend is also quite healthy. We have entered Target first, and yes, the sell-through data is very quickly rising.
In Ulta as well, we are not seeing any drop or decline, so it is also steadily rising. In Walmart, the sell-through data, we are not getting the specific data yet, and I believe they will be able to share the data with you in time. Thank you.
We will take the next question. The next question is from Park Jeong-hwan from Daol Investment & Securities. Please go ahead.
Hello, I am Park Jeong-hwan from Daol Investment & Securities. Thank you for this opportunity. My questions are quite similar to the previous questions, and based on the answers on a quarter-over-quarter basis, there were some changes to operating profit and there was increase in the share of Amazon, and then there was an increasing share in B2B and resulting in the improvement of OP margin. Considering our air freight expenses and ad spend, I believe that there will be some recovery in OP margin in the second half of the year. Do you think that this will be mainly driven by the increase in offline sales? What do you think are going to be the major drivers behind the improvement in the OP margin? I would like to get some guidance on the overall direction. Thank you.
First of all, what you made is quite valid.
As you mentioned, we have the online channel as well as very aggressive marketing with increase in viral, not only in the U.S. and Europe. There will be increase in B2B orders, and as a result, B2B channel, because it has higher margin, will contribute to OP margin, which means that the marketing expenses and ad spend are more allocated to the online channel, and with the B2B increase, OP margin will improve. In terms of geography, in Europe, the OP margin is currently lower than the average OP margin in Europe because we are quite aggressive in increasing our top line in Europe. Of course, we are not incurring any losses in that sense, but we are quite aggressive in conducting our marketing in Europe to expand our presence.
When it comes to our cases in Japan and the U.S., once we have more mature presence in these markets, OP margin will naturally improve. For instance, in Japan, our revenue growth is almost 3x , but OP margin continues to improve. Therefore, in Europe and other channels, when we consider that they are online channels, OP margin will improve in the future as we become more mature in these markets. So initially, in order to increase penetration and in order to address the market entry barriers, we tend to execute aggressive marketing, therefore resulting in an increase in marketing and ad expenses. It is not so much about efficiency improvement, but rather we try to improve our top line in these new markets, and later our margin will improve.
Moving on to OP margin trend for next year, we do not have any specific sales guidance or OP margin guidance for next year because we still are working on our internal analysis. In our view, we believe that there is enough story to further drive up our OP margin. As you mentioned, we have very rapid increase in online sales, B2B demand will go up as well. These are our expectations for next year. Nevertheless, this year, we have had to deal with many unexpected situations, so there are a lot of uncertainties for next year as well. When we communicate with our analysts, we try to provide some buffer in our outlook and projections. Our goal is to maintain our OP margin while trying to increase the top line further.
We continue to observe our market situations, we will make sure to communicate with you.
We will take the next question. The next question will be raised by Mr. Izumo from CLSA Securities. Please go ahead with the question.
Yes, good morning. Thank you very much for taking my questions. It was actually mentioned earlier, a couple of questions as an extension to that. The first is, as was mentioned, yes, I see that the revenue guidance has gone up from KRW 2.1 trillion- KRW 3 trillion, even accounting for the geopolitics. I would say that that would also include the uncertainties about the air freight, so the cost is going to be higher. Going into next year then, assuming that KRW 3 trillion is going to be the baseline, I believe that the air freight by that time could go down. Today then, what is the percentage of the air freight out of the revenue, or what would be the percentage in each quarter?
Now for next year, if it is going to be about KRW 3 trillion in revenue, again, I wonder whether there is a chance that the air freight is going to drop considerably next year. I hope for some guidance on this one. The second question is, in the second half of this year, the revenue growth is very hard to predict, of course then, the same for next year as well. Still the growth is very high, so I wonder whether the high growth is going to continue into next year given the high base. Perhaps for next year then, even if you cannot share the specific revenue target or guidance, can you at least give us some insight into the potential drivers of the revenue going to next year as well?
Thank you. First of all, about the air freight, yes, compared to last year, we would say that it is about 10x higher this year. This time it is not the cost recognition, but just in terms of the Q2 air freight actual, it is close to KRW 30 billion, which is highly abnormal, and that is why we call this one-time cost or a one-off cost. In terms of the share out of the revenue, in terms of the air freight, it is 10x higher than the ocean freight. One thing that we could not expect was the long-distance markets, like for example, in the E.U. and the U.S. and the revenue growth there. Also we have all these SKUs that are existing and also some of the newly launched SKUs, and they are also growing very rapidly.
If there are some stock shortages, they tend to drop dramatically in the Amazon ranking. So we also wanted to keep them up in the ranking and that is why we had to rely on air freight quite a lot. Again, the long-distance markets, for example, in the U.S. and Europe, because inventory was not enough, there also was quite a lot of expense in terms of the air freight. But more recently, we are seeing that there is some stabilization of the inventory in the E.U. and the U.S. So we believe that in the second half, the inventory is going to stabilize.
So we believe that in the second half, the inventory is going to be built up to the extent that it will also reduce the air freight considerably. Also because we had been relying on online and D2C, so we were having very lean operations. But the K-beauty trend these days, not just for the company but also for others as well, we do believe that the demand is going to steadily and consistently rise. Meaning that I believe that now we also have the fundamentals to have healthy inventory turnover, and that is why the inventory is being built up, and we believe that that is also going to drive down the air freight in the second half. About the growth drivers. In the U.S., the U.S. revenue is growing much faster than we had expected in the early part of the year.
Despite that, the offline is still about 8:2 , meaning that offline, the sales growth was not as fast as we had expected. Rather than that, I would put it this way. The online growth is growing more rapidly, and in terms of the offline, of course, it takes time for us to enter into these brick-and-mortar shops. So we do believe that, yes, there will be growth in both online and offline as well. Also for the offline, we are also looking forward to the growth in the new categories. We did not mention this earlier in the briefing, but in the hair and body categories, we see that some of the K-beauty companies are also thriving there, and the same for us.
In the hair and body categories, we are also seeing growth, so we intend to be even more aggressive in the U.S. market, and that is where we are looking forward to in terms of the stronger growth. Let me summarize now for the U.S. online, the existing products expansion and also the new categories. Through these moves, we continue to broaden our growth base. For the offline market, we believe that the revenue will continue to grow as well. Looking to the European market, we see this still as a new market for us. We believe that the U.S. leading the way, Europe will also follow suit. We will also continue to be aggressive in the European sales as well.
In the early part of the year, for the European market, we would say that this is our year one, and we are looking to about KWR 300 billion in revenue. In the first half, we have already achieved over KWR 220 billion . Based on this trend, we believe that for the full year, we will be able to more than fulfill KWR 500 billion in Europe. For your information, in the U.S., it was KWR 500 billion . If we achieve KWR 500 billion in Europe this year, that means that we will match number coming from the U.S. last year, meaning that Europe has a very strong growth potential for us. Not only that, but in Europe now we are focusing on the online channels in the top five countries.
In Europe, there are some other new countries for us as well. So we can continue to broaden our presence and our base there, meaning that there can be more growth to come. Not only that, but also the EBD medical devices and also the skin boosters, as well as the home beauty devices, which are our focus these days. They are also high drivers for us today, but also will continue to be so into the future, especially for the home beauty devices in Q2. There was a transition from the existing product to a new product, and because of that, as the main SKU transitioned, perhaps the growth was not as high as we have seen in the previous quarter.
Going into the second half, we will have stronger promotions for the new products and as a result, the ASP. We will also match the ASP of the predecessor product as well. We cannot specify how much it is going to be. But the skin booster and the EBD, we do believe that they will also be able to drive quite a strong sales next year as well.
Thank you, and we will take the next question.
The next question is from Choi Jun-young from Meritz Securities. Please go ahead.
Hello, can you hear me?
Yes, we can hear you well.
Thank you for the opportunity. I have two questions. First of all, about marketing expenses. About 20% of revenue is used for marketing, according to your explanation. I would like to know whether you are going to spend marketing expenses preemptively in Q3 as well. My second question is about B2B revenue. What is the percentage of B2B sales in Q2 out of the total revenue? Also in Latin America and Middle East, if you have any go-to-market strategies for these markets, please share them with us.
Thank you for your questions. Typically, before any major event, we are likely to spend marketing expenses one month prior to that major event. As for Q3, in my view, rather than preemptive marketing expenses, Q3 is expected to see an early recognition of air freight in Q3 instead of Q4.
We have cut-off deadlines that we need to meet, and cut-off deadlines are usually two to three months prior to a major event. For that, we would have to stock up faster than usual. In order to address inventory shortage, we are utilizing air freight, and some of these air freight expenses are likely to be recognized in Q3. As for commissions and marketing expenses, Prime Day is from November, so some of them may be recognized in October, but these may not be recognized in Q3 to a large extent. For the percentage of B2B sales, we are not able to provide you with a specific breakdown, but it is roughly speaking 30%. Moving on to our Middle East and Latin American market, for your information, last week, we accompanied the president's visit to Latin America, and we visited Brazil.
Latin America was, in our view, a market with great potential, and we were able to see that in person. Our Latin American sales is not very significant, and this was not our major market. It was mainly B2B channels, mainly focusing on B2B distributors rather than large retail chains. The volume was not very big. When we actually visited the market there, we were able to see that there was a high brand awareness and awareness of K-beauty. When we meet with people who are not in the beauty business, they were even aware of Medicube and our brand.
So far, we focused on Europe, North America, and Asia, but as you mentioned, Latin America and Middle East are boasting a lot of potential because we were able to see that there is high interest in K-beauty, and there is viral marketing such as TikTok and Instagram and social media channels. We were able to see that there was a growing fandom for K-beauty in these markets as well. Going forward, we believe that sales can grow in these new emerging markets. However, in Q2, Latin America and Middle East figures cannot be provided. If you want to know more details, we will communicate to you separately.
There was a question from [Kim hoon] on offline and B2B performance in Q2 versus outlook for the second half of the year, especially with respect to Europe and the U.S.
She wants to know our plans for these major markets.
Online and offline breakdown in the U.S. and Europe, as I mentioned, 80% online and 20% offline in the U.S. In Europe in Q2, 50% online and 50% offline. As you may know, we started online earlier this year, and there was an acceleration of growth, so more than half of growth in the online market in Europe. Moving on to our projections for Europe and the U.S. for the second half of the year. As you may know, in the U.S., we continue to offer new SKUs and best sellers as well. In the second half, in October, we have Amazon Prime Day, and also we have the Black Friday event in November. We are preparing for that. We entered Walmart and Target in the first half of the year.
Going into the second half of the year, we are planning to enter major retailers, including Costco. There will be a big increase in the second half of the year for these offline channels. With initial shipments to new retailers, we'll be able to see a big driver. Moving on to Europe, the U.K. is a leader, and Germany, France, Spain, and Italy are markets with big growth. In Amazon Top 100, there is an increasing presence of our products. If we accelerate this speed, we'll be able to expand our online presence, and this will lead to a growth in offline market as well. These are going to serve as important drivers for next year. We are on track for the U.S. market and for Europe. As we checked, there is a huge upside for offline sales increase.
Indeed, in Europe so far, we focused on marketing and Amazon Play.
For online, we didn't, but for Amazon and TikTok and online channels, we are able to increase our revenue through viral marketing on social media. There is big growth in demand for our products in Europe. I believe that sales growth in Europe will take off in earnest.
We will take the next question.
The next question will be raised by Mr. Kwon Woo-jung from Kyobo Securities. Please go ahead with the question.
Thank you very much for taking my questions. First, about the U.S. offline. Starting this year, Target, Walmart, you have also entered these retailers. I believe that the channel is a bit different in characteristics from Ulta. I wonder what the initial performance is, and also in terms of the initial operations, what has been your experience so far?
The second question is, as you expand the offline presence in the U.S., moving from Amazon-centric to more offline, I wonder whether there are any concerns of cannibalization. In the offline, they say that the consumers offline are a bit different from online. Could you also share your experience so far? Last, in the U.S. and Europe, you have also upwardly adjusted the guidance for the year. Out of this, what would be the share of offline?
Thank you. First of all, for the offline revenue in the U.S., as we diversify the channels, we do believe that there is going to be sufficient revenue upside.
I did not share specific data with you earlier, but in terms of the Target or Walmart and also for the future, what we are planning for example, the Costco and CVS Pharmacy, I would say that we will be able to meet the GMV that is similar to Ulta. In the U.S. now, for each of these five channels, in terms of the GMV and also the purchasing power, they are quite strong. What we have seen so far is that, in terms of the cannibalization among the offline channels, it hasn't been long enough for us to see any signs of that yet. We can see that there is healthy growth coming from each offline channel.
Your question was whether there was any cannibalization between online and also offline, and we have not seen anything like that so far. It is also hard for us to figure out the reasons yet. Perhaps the offline consumers are different, and also in terms of the accessibility, it might be different by the region as well as the purchasing patterns, and the shopping patterns might also be different by the region. Yes, we are also seeing increase in offline channels, but even more so, we are also seeing revenue growth in Amazon as well. So far we are seeing little to no signs of cannibalization. In terms of the KRW 3 trillion guidance, you also asked about the offline in the U.S. share.
For us, the guidance, this is actually based on the rollout plan from the first half. Yes, there is going to be growth in the volume in the U.S. as well, but if the offline is going to grow even more, then we actually believe that there is also some more upside potential. Based on the guidance so far, the share of the offline is going to be similar to where we are today, so about 20%-25%.
Thank you. We see that there are no further questions, but if there is one more, I believe that we have time to take one more question. The next question is from Han Yu-jeong from Hanwha Investment & Securities. Please go ahead.
Hello, can you hear me well?
Yes, we can hear you.
I have two questions. I am not sure if this is an appropriate question, but within this month, there will be some changes to your business when it comes to lockup. The second question is that your existing products are selling well, but there is high expectation for new categories including hair and body. If there is any number or data you can share with us, we will appreciate it.
CEO and myself, there will be no longer lockup. The other executives, their lockup period ended more than a year earlier. As for share sales related events, we do not have anything expecting soon. As for the remaining quarters, as I mentioned before, about a year and a half lockup period ended. A couple of times, shares were traded, but these were mainly to pay taxes for stock options. Tax payment has not been done, so there will continue to be some selling of shares, but there will not be any major share block deals or any major selling of our shares into the market. As for myself, I do not have any intention to sell my shares right away, but for some time, we continue to focus on shareholder value enhancement.
Going forward, if there is any plan for a major share sell-off, then we will make sure to communicate that with you in advance so that there will be no major impact on the market. What I can say right now is that there is no concrete plan for equity sell-off, and our CEO is not interested in doing so in any time soon. Moving on to your second question regarding our performance in the new categories. We do not have specific data to share with you at this moment. We will share them later separately. But we see encouraging performance coming from the new categories. Not only the new categories, but also the mud packs and multi-balm product. We have these new SKUs. Their performance is really encouraging.
In the new categories, especially the hair category, is quite encouraging. In Amazon, we were ranked in top 100 in Amazon, which shows that our performance is growing quite significantly. Therefore, we plan to be more aggressive in the new categories, including hair and body. In addition to our existing SKU lineups, we also see a huge potential for success in the new categories, including body and hair. We are planning to execute more marketing for these products as well.
Thank you. It is time to conclude our earnings call.
Thank you again for taking the time to join us today. Everyone at APR remains fully committed to delivering sustainable growth through continued innovation and disciplined execution. We sincerely appreciate your continued interest and support. This concludes APR's second-quarter 2026 earnings call. Thank you.