Kolon FnC Turns to Operating Loss in Q1... "Due to Initial Investments in Overseas Markets"

First Quarter Sales Reach 262.9 Billion Won... Down 4.1% Year-on-Year
Impact of Weakened Fashion Consumer Sentiment and Abnormal Weather Conditions

The FnC division of Kolon Industries was not able to avoid the impact of a shrinking fashion market and abnormal weather conditions this year. In the first quarter of this year, the company posted an operating loss, and sales revenue decreased compared to the previous year, resulting in deteriorated profitability.

On May 8, Kolon FnC announced in a regulatory filing that its provisional sales revenue for the first quarter of this year was 262.9 billion won, a decrease of 4.1% compared to the same period last year. During the same period, the company recorded an operating loss of 700 million won, turning to a deficit.

The company explained that profitability declined due to weakened consumer sentiment in the fashion sector, which has continued since last year, as well as abnormal weather conditions. The company also added that operating profit decreased due to initial investments related to entering and expanding into new global markets.

Kolon FnC emphasized that it is focusing on pioneering overseas markets. Kolon Sports China achieved annual sales of approximately 750 billion won (retail basis) last year. In the first quarter of this year, the company reported explosive growth, with sales increasing by 96% compared to the same period last year. The golf apparel brand 'G/Fore' has also begun expanding into new markets, opening stores in Japan and China since last month, with a focus on premium distribution channels.