Fashion Industry Missing Bunker, Rebounds with Golf Wear Shot
Young Golfers Visiting Golf Courses Surge Due to COVID-19
Recovery from Last Year's Slump Leads to Profit Turnaround and Performance Rebound
[Asia Economy Reporter Seungjin Lee] The fashion industry, which was pushed to the brink last year due to COVID-19, has achieved a dramatic turnaround in performance thanks to the pandemic. As dense outdoor activities became difficult due to COVID-19, the number of people, especially among the younger generation, visiting golf courses in small groups surged rapidly.
On the 11th, major fashion companies succeeded in shaking off last year's slump and achieving a dramatic rebound in first-quarter performance. Kolon Industries FnC and LF, which recorded losses last year, turned a profit with operating profits of 200 million KRW and 5.1 billion KRW respectively in the first quarter. Hansome, a subsidiary of Hyundai Department Store, also recorded sales of 333.3 billion KRW and operating profit of 45.2 billion KRW in the first quarter, increasing by 22.8% and 54.5% compared to the previous year. Shinsegae International also posted an operating profit of 18.2 billion KRW in the first quarter, up 52.5% year-on-year.
Golf wear led the growth. Fila Holdings, which is about to announce its earnings, is expected to record an operating profit of 168.3 billion KRW in the first quarter, thanks to its subsidiary Accusnet, which owns a golf specialty brand. This is a 150% increase compared to the same period last year.
The background of the improved performance of major fashion companies lies in the explosively growing golf population. According to the Korea Golf Course Management Association, the number of golf course visitors increased by 5.03 million compared to the previous year.
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A fashion industry insider explained, "Along with the influx of new golfers mainly in their 20s and 30s, the performance of fashion companies is also rising together. As COVID-19 continues, the golf population is expected to keep increasing, and with consumer sentiment recovering, the fashion industry is expected to make up for much of last year's slump this year."
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