Record-High Sales, Operating Profit, and Net Profit in Q2
Balanced Growth Across Fashion, Beauty, and Other Categories
Effectiveness of the Online-Offline "Omnichannel" Strategy
Musinsa achieved double-digit growth in both sales and operating profit in the second quarter of this year, setting a new quarterly record. The company's "omnichannel" strategy, which has strengthened competitiveness both online and offline, appears to have been effective, as key categories such as fashion, beauty, and lifestyle showed stable growth.
According to Musinsa on August 28, sales in the second quarter of this year reached approximately 377.7 billion won, up 30.7% compared to the same period last year. During the same period, operating profit was 41.3 billion won, an increase of 22.6% year-on-year. Net profit for the period also soared to 40.8 billion won, more than five times higher (462.8%) than the previous year. All three indicators marked the highest second-quarter results in the company's history.
For the first half of this year, sales amounted to 670.5 billion won, up 22.1% from the same period last year. Operating profit was 58.9 billion won, an increase of 23% year-on-year. Net profit for the period was 37.2 billion won, reflecting the impact of an accounting policy change that recognized redeemable convertible preferred shares (RCPS) as liabilities. Excluding this impact, net profit for the first half would have reached 80 billion won.
Despite the ongoing overall consumption downturn, the fashion, beauty, and lifestyle categories have all gained attention, resulting in stable growth. Online, the "29CM I-Gu Week" event in June and Musinsa's "Mujinjang Summer Black Friday" promotion together generated more than 340 billion won in sales during the summer off-season.
The expansion of the offline segment also played a significant role. In the second quarter of this year, Musinsa focused on expanding its offline presence by sequentially opening new stores: Musinsa Standard Triple Street Songdo (April), Musinsa Standard Galleria Timeworld (May), Musinsa Standard Shinsegae Premium Outlet Siheung (June), and I-Gu Home Seongsu (June). As a result, the company reported that sales from offline stores in the first half exceeded 100 billion won.
Musinsa plans to further expand its offline presence in the second half of the year. Earlier this month, the company launched the select shop "Musinsa Store Gangnam" in Seoul's Gangnam district. By the end of this year and early next year, Musinsa also plans to open large-scale select shops called "Musinsa Megastore" in Yongsan and Seongsu, Seoul.
The company is also accelerating its overseas expansion. Musinsa recently completed the establishment of a joint venture with Anta Sports, China's largest sportswear group. Moving forward, the joint venture will lead Musinsa Standard and Musinsa Store's online and offline operations in the local market. The official name of the joint venture is "Musinsa Shanghai Trading Co., Ltd. (MUSINSA SHANGHAI)." The final regulatory approval process is expected to be completed within the third quarter.
Park Junmo, CEO of Musinsa, stated, "Since entering emergency management in April, we have focused on eliminating inefficiencies across the organization and quickly building competitiveness both online and offline. As a result, we achieved balanced growth in the second quarter." He added, "Although external uncertainties are expected to persist in the second half of the year, we will proceed with planned investments in growth sectors such as global, beauty, lifestyle, and recommerce, and respond flexibly to market conditions."
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