Handsome (020000.KS), the fashion arm of Hyundai Department Store Group, will buy back and cancel 10 billion won ($7.2 million) worth of its own shares each year through 2028. The company is also raising the share of profit it pays out as dividends and lifting its minimum per-share payout, strengthening shareholder returns over the next three years.
Handsome said in a regulatory filing on the 18th that it will acquire 653,168 treasury shares on the open market and cancel all of them within the year. The purchase is valued at about 10 billion won, or roughly 3.0% of total shares outstanding. The buyback will run through Oct. 22.
Starting this year, the company plans to repurchase and cancel 10 billion won worth of shares in 2027 and again in 2028. Total planned purchases over the three years come to 30 billion won. Handsome said cancelling the shares will reduce the number outstanding and lift shareholder value.
The company is also increasing cash dividends. It is raising the minimum threshold for its dividend pool to at least 20% of separate-basis operating profit, up 5 percentage points from the previous floor of at least 15%. The minimum annual dividend rises by 50 won to 800 won per share from 750 won.
The decision extends a shareholder-return push Handsome has pursued since 2024. At that time, the company cancelled treasury shares equivalent to about 5% of its total stock and set the dividend pool floor at 15% or more of separate-basis operating profit. It has now raised that threshold a step further while laying out a regular schedule of buybacks and cancellations for the next three years.
"We plan to enhance shareholder value by raising the minimum dividend and the dividend payout ratio and by carrying out share buybacks and cancellations over three years," a Handsome official said. "Based on sustained growth, we will raise corporate value and strengthen trust with market stakeholders."
