F&F Q3 Operating Profit Up 45%... Strong Growth in Chinese Market

[Asia Economy Reporter Eunmo Koo] F&F recorded strong third-quarter earnings, driven by increased demand in global markets including China.

F&F announced on the 1st through a public disclosure that its operating profit for the third quarter of this year was 138.04 billion KRW, a 44.6% increase compared to the same period last year. During the same period, sales rose 34.3% to 441.682 billion KRW, and net profit also increased by 54.1% to 109.582 billion KRW.

An F&F official explained, “Thanks to the digital transformation strategy introduced early on,” adding, “By digitalizing the entire fashion business process from product planning, production, transportation, to communication with consumers, we have driven global market expansion and high-efficiency management.”

In particular, it is understood that the sales of the China subsidiary quickly recovered due to aggressive store openings and improved sales per store following the easing of lockdowns. Although the impact of lockdown measures has not completely disappeared, brands such as MLB appear to have shown growth both online and offline.

F&F’s key brands, including MLB, are expected to accelerate their market share expansion in China, especially among the younger generation. Jiho Choi, a researcher at Samsung Securities, evaluated, “The Chinese fashion market is increasingly concentrating on top fashion brands, especially foreign brands,” and added, “The Chinese Generation Z, who are the main drivers of this concentration, are highly likely to prefer F&F’s product portfolio.”

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