Fashion Market Struggles Despite Byun Woo-seok; F&F Sees Profitability Decline in Q1

First Quarter Sales at 505.6 Billion Won... Down 0.3% Year-on-Year
"Consumer Sentiment Weakens Across Domestic Fashion Market"
"Sales Remain Steady Year-on-Year Thanks to Solid Overseas Market Performance"

F&F announced on April 29 that its consolidated operating profit for the first quarter of this year was provisionally tallied at 123.6 billion won, a 5.1% decrease compared to the same period last year.

The company's first-quarter sales amounted to 505.6 billion won, down 0.3% year-on-year. Net profit for the period was 83 billion won, a decrease of 13.8%.

A representative from F&F stated, "Despite a contraction in consumer sentiment across the domestic fashion market, we maintained results close to last year's level thanks to solid sales growth in overseas markets. In particular, we expect the high growth trend in the Chinese market to continue, as qualitative growth of MLB is accelerating through store renewals."

The representative added, "Going forward, our core brands such as MLB and Discovery will accelerate expansion strategies focused on overseas markets, continuously strengthening our global business competitiveness."

On the same day, F&F also announced its plan to enhance corporate value.

First, the company set its target for compound annual growth rate (CAGR) of sales at 10% for 2024 to 2027. The plan is to maximize growth by strengthening MLB's global competitiveness, expanding Discovery's overseas presence, and identifying new growth drivers.

F&F also aims to maintain an average return on equity (ROE) of over 20% for the three years from 2025 to 2027. The company presented a separate shareholder return rate target of an average of over 25%. In addition, it plans to repurchase more than 60 billion won worth of treasury shares over the next three years.