CJ OnStyle Sees 22% Drop in Q2 Operating Profit Due to One-Off Expenses

Second Quarter Sales Reach 385.8 Billion KRW, Up 3.7% Year-on-Year

CJ OnStyle continued its sales growth, driven by the expansion of the mobile live commerce market. However, operating profit saw a double-digit decline due to increased content investment and one-off expenses.

According to CJ ENM on August 7, CJ OnStyle (Commerce) recorded sales of 385.8 billion KRW in the second quarter of this year, up 3.7% compared to the same period last year. During the same period, operating profit was tallied at 21.4 billion KRW, representing a 22% decrease year-on-year.

This result was influenced by increased mobile live commerce transactions in the first half of the year. The spread of short-form content on external channels such as YouTube and TikTok led to a rise in mobile app traffic, resulting in a 47.1% year-on-year increase in mobile live commerce transaction volume in the first half of 2025. The company explained that new IPs such as 'Park Seri's Bigsson Unnie BIGSeri' and 'Chef's Gonggu Market with Austin Kang,' along with improvements in product structure focused on wellness in response to the value-for-money trend and abnormal weather conditions, contributed to strong sales across various categories including food, beauty, and travel, thereby driving performance.

However, operating profit declined due to increased content investment aimed at securing a leading position in the mobile live commerce market, as well as expanded marketing investments such as operating popup stores in April and May to attract loyal customers, which resulted in one-off expenses.

Looking ahead, CJ OnStyle plans to expand new customer acquisition through synergy with external channels such as TVING and social media, while focusing on enhancing the competitiveness of its e-commerce platform. In terms of content, the company intends to launch new mobile live commerce IPs in collaboration with major celebrities to provide an immersive shopping experience. On the logistics side, it will further upgrade its delivery infrastructure by expanding same-day delivery services. Additionally, CJ OnStyle aims to significantly expand its lineup of new and premium brands targeting the 2025 fall/winter (F/W) season to strengthen its competitive edge.