Musinsa Posts 24% Rise in Q1 Operating Profit... "Emergency Management to Continue"

First Quarter Revenue Reaches 292.9 Billion KRW, Up 12.6% Year-on-Year
Growth Across Key Categories Including Fashion and Beauty
"Emergency Management System Maintained Amid Sluggish Consumer Sentiment"

In the first quarter of this year, Musinsa recorded double-digit growth in both revenue and operating profit. However, the company plans to maintain its emergency management system, as consumer sentiment is expected to remain sluggish in the second quarter.

According to Musinsa on May 22, the company’s operating profit for the first quarter was 17.6 billion KRW, up 24% from the same period last year. During the same period, revenue reached 292.9 billion KRW, an increase of 12.6% year-on-year. Net profit for the quarter was 15.7 billion KRW, up 104%.

Musinsa explained that the company achieved balanced growth across most categories, including fashion, beauty, sports, and lifestyle. Despite continued sluggish domestic demand and the first quarter being the off-season for the fashion industry, Musinsa reported double-digit growth in revenue and operating profit due to its stable business foundation.

In the offline sector, Musinsa stated that the number of visitors is increasing at both Musinsa Store’s select shops and its own-brand (PB) ‘Musinsa Standard’ offline stores. In March, the number of customers visiting Musinsa Standard offline stores surpassed 2.1 million, with cumulative visitors in the first quarter exceeding 4.7 million. Last month, the average proportion of sales to foreigners at Musinsa Standard’s five foreigner-specialized stores (Hongdae, Gangnam, Seongsu, Myeongdong, and Hannam branches) reached about half of total sales.

Previously, in April, Musinsa implemented an emergency management system in response to continued external contraction in consumer spending. However, the company stated that it will continue to make necessary investments to secure future growth engines through the expansion of new businesses without any setbacks.

Park Junmo, CEO of Musinsa, said, “As a result of focused investments in growth areas last year, such as incubating new and small business designer brands, supporting K-fashion’s overseas expansion, and diversifying categories including beauty and home, we saw these results in the first quarter. However, due to the continued slump in consumer sentiment in the second quarter, which has heightened uncertainty, we will maintain our emergency management system to overcome the challenging market environment.”