Castelbajac Reports Operating Profit of 580 Million KRW in Q1... "Turned to Black"

"Effects of AI Digital Management Innovation and Organizational Improvement"

Golfwear brand Castelbajac announced on the 16th that its operating profit for the first quarter of this year, based on individual standards, turned positive to 580 million KRW, compared to an operating loss of 410 million KRW during the same period last year. Sales for the same period recorded 11.2 billion KRW, down 24%, and net profit exceeded 880 million KRW, also turning positive.

Castelbajac Store [Photo by Castelbajac]

Castelbajac attributed the turnaround to management efficiency and structural improvement driven by artificial intelligence (AI) digital management innovation. By managing inventory through big data, they increased operational efficiency for each store and adopted a strategy of boldly closing underperforming stores while opening new stores in key locations. Additionally, in response to AI predictions of an early heatwave, they quickly launched summer products, resulting in a 13% increase in sales of those products compared to the same period last year.

Castelbajac plans to maintain this momentum by preparing products for the fall and winter (FW) season to continue its upward trend. Furthermore, with market entry into Southeast Asia, including the United States, becoming more tangible, the company also expects long-term profitability improvements.

A Castelbajac representative stated, "We will strive to establish ourselves as a leading golf brand representing Korea through management innovation aligned with the times and aggressive overseas market expansion."