Xexymix Reports Q1 Operating Profit of 800 Million Won, Down 76.7% Year-on-Year

First Quarter Sales Reach 50.8 Billion Won, Down 4.5% Year-on-Year
"Impact of Declining Consumer Sentiment... Rebound Expected in Second Quarter"

Athleisure brand Xexymix announced that its consolidated operating profit for the first quarter of this year was 800 million won, a decrease of 76.7% compared to the same period last year.

According to Xexymix on May 16, sales during the same period amounted to 50.8 billion won, down 4.5%. The company explained that the sharp decline in consumer sentiment in January and February, due to domestic and international instability, had a significant negative impact on both sales and operating profit.

A Xexymix representative stated, "Anticipating a significant drop in consumer sentiment since last year, we have implemented strategies from a long-term perspective, such as strengthening business operations, improving financial soundness, and enhancing organizational structure, which led to a reduction in selling and administrative expenses."

Overseas export performance increased. Export sales to Japan, Taiwan, and China rose by more than 94% year-on-year, while sales to Indonesia, Mongolia, and Australia grew by more than 147%, 77%, and 58%, respectively, compared to the previous year. The company attributed this success to its flexible response to local demand and policies.

Xexymix expects to achieve strong results starting from the second quarter. Since March, the company has successfully boosted consumption and reversed the business atmosphere through its 10th anniversary events held simultaneously in Korea, China, Japan, and Taiwan.

The company also plans to accelerate the opening of stores in China. Since last month, four stores have opened over four days, and Xexymix is pursuing a goal of opening 20 stores in the first half of the year and another 20 in the second half.

A Xexymix representative said, "We will further strengthen our competitiveness as an athleisure wear company by focusing our capabilities on product development and enhancing our portfolio," adding, "We will continue to build growth momentum and expand our stable profit base."