Samsung C&T Fashion Avoids Recession, Achieves Record High Performance Last Year

Operating Profit of 194 Billion KRW Last Year, Up 7.8% YoY
Strong Sales of Imported Brands and Expansion of Online Channels

Expected Sales of 2.1 Trillion KRW This Year: "Brand Discovery and Online Strengthening"

Samsung C&T Fashion Division recorded its highest-ever performance last year.

According to Samsung C&T on the 31st, the fashion division posted an operating profit of 194 billion KRW last year, marking a 7.8% increase compared to the previous year (180 billion KRW). Sales revenue rose by 2.5% to 2.051 trillion KRW, setting a new record for the highest performance. In the fourth quarter of last year, sales reached 545 billion KRW and operating profit was 46 billion KRW, both increasing compared to the third quarter (sales of 456 billion KRW and operating profit of 33 billion KRW). The peak season effect, with increased year-end consumption, boosted both sales and operating profit.

Despite a decline in consumer sentiment due to the economic downturn, strong sales of imported brands and growth through expanded online channels were key factors in the performance increase. Samsung C&T is expanding the share of exclusive imported brands such as Ami and Maison Kitsun? and securing a diverse portfolio by discovering new brands like Jacquemus and Ganni. Online sales have also increased, with online sales accounting for 21% of total sales last year, up 2 percentage points from 19% two years ago.

Samsung C&T Fashion Division plans to focus on nurturing new brands and developing its online mall platform this year as well. For new brands, it intends to expand exclusive imported brands using select shops like Beaker and 10CC. Regarding the online mall, it plans to enhance personalized services by integrating artificial intelligence (AI) digital technology to recommend brands and products to consumers. A Samsung C&T official stated, "Although the number of purchases linked to AI recommendation services is not yet large, we will advance AI to secure platform competitiveness," and explained, "We will also launch online-exclusive brands to strengthen platform competitiveness." Eight Seconds plans to expand competitive distribution channels and improve brand management capabilities to generate stable profits for its overseas expansion in 2025.

The expected sales revenue for Samsung C&T Fashion Division this year is around 2.1 trillion KRW, similar to last year. Samsung C&T said, "Clothing consumption is expected to slow down, intensifying competition," and added, "We will enhance both scale growth and profitability based on a diverse portfolio ranging from Eight Seconds to premium brands."