Revived Consumer Sentiment... Fashion Industry Soars in Q2 Earnings

[Asia Economy Reporter Seungjin Lee] Despite the impact of COVID-19, the domestic fashion industry continued to show strong performance in the second quarter. This was due to the thawing of consumer sentiment that had frozen last year and the shift to an online system.

According to the fashion industry on the 15th, Samsung C&T Fashion Division recorded sales of 444 billion KRW in the second quarter of this year, a 17.8% increase compared to the same period last year, and operating profit soared by 4200.0% to 43 billion KRW.

Samsung C&T Fashion Division began structural improvements last year by entering 'emergency management.' The core strategies were 'bold brand restructuring' and 'strengthening online channels.' They streamlined brands that were luxurious but somewhat old-fashioned and boosted performance through the distribution of 'new luxury brands.' They also started expanding online malls more than offline stores.

Fila Holdings saw a significant rebound in its second-quarter performance. This was the result of strong performance from its subsidiary 'Acushnet,' which operates Titleist and FootJoy, combined with the base effect of COVID-19.

Fila Holdings recorded an operating profit of 173.8 billion KRW in the second quarter of this year, a 245.5% increase compared to the same period last year. Sales amounted to 1.0194 trillion KRW, up 63%. Net profit reached 135.7 billion KRW, up 198.2%.

Additionally, Fila Holdings achieved sales of 2.0076 trillion KRW for the first half of the year, a 41.9% increase compared to the same period last year. Among this, Acushnet's sales were 1.3474 trillion KRW, accounting for 67% of total sales.

Acushnet played a key role as the 'top contributor' to the company's sharp rise in sales and operating profit in the second quarter. Acushnet, the world's largest golf equipment company acquired by Fila in 2011, operates Titleist and FootJoy and has been a strong contributor to the company's performance.

The Nature Holdings posted second-quarter sales of 59.6 billion KRW, a 22.2% increase compared to the same period last year. Operating profit for the same period rose 11.5% from the second quarter of last year to 9.4 billion KRW. Net profit increased 14.5% to 7.0 billion KRW.

The second-quarter results were highlighted by the steady growth of ‘National Geographic Kids’ and ‘NFL’.

‘National Geographic Kids’ sales grew 483% compared to the same period last year. The number of stores more than doubled from last year, with 42 locations operating as of the second quarter this year. The sports culture brand ‘NFL’ also steadily gained popularity among the 10-20 age group with its distinctive colors and unique designs, increasing sales by 171% compared to the second quarter of last year.

This content was produced with the assistance of AI translation services.