'Enduring the Cold and the Heat'... Unstable Weather Leads to Tightened Spending

Samsung C&T Fashion's Q1 Operating Profit Down 37%
"Impact of Weakened Consumption and Abnormal Weather"
Sales at 504 Billion Won... Down 2.5% Year-on-Year

The fashion division of Samsung C&T reported a 37% year-on-year decline in operating profit for the first quarter.

According to the Financial Supervisory Service's electronic disclosure system on April 30, sales in the fashion division of Samsung C&T amounted to 504 billion won, down 2.5% (13 billion won) from the same period last year. Operating profit decreased by 20 billion won (37%) during the same period, recording 34 billion won. The operating margin stood at 6.8%, a significant drop compared to the operating margin of 10.4% in the first quarter of last year.

Beaker 'Stitch Comes Blue' 25SS Collection Photoshoot. Provided by Samsung C&T Fashion.

A representative from Samsung C&T's fashion division stated, "Our performance declined due to reduced consumer spending resulting from domestic and global economic uncertainty, as well as the impact of abnormal weather conditions." The representative added, "We hope to see an improvement in the business environment both domestically and internationally, leading to a recovery trend in the latter part of the year."

Despite the challenging environment, the fashion division of Samsung C&T continues to strengthen its brand portfolio by launching new brands. In June of last year, the company introduced 'Anggae,' a womenswear brand targeting the MZ (Millennial + Generation Z) demographic, and in March of this year, it launched 'Stitch Comes Blue,' Beaker's in-house denim specialty brand. Beaker plans to further enhance its own brand offerings in addition to sourcing domestic and international brand products as part of its strategy for sustainable business growth.