Fashion Group Hyungji, 12.2 Billion KRW Profit with New Sales Growth and Distribution Network Expansion

Operating Profit of 12.2 Billion KRW and Net Profit of 59.8 Billion KRW Achieved
Sales Up 12.4%... Strong Performance in Q1 This Year
"Friendly Store Operations to Enhance Customer Loyalty"

Fashion Group Hyungji announced on the 14th that its operating profit and net income significantly improved compared to the previous year.

Fashion Group Hyungji's operating profit last year was 12.2 billion KRW, showing an improvement of 50.4 billion KRW compared to the previous year. Net income was 59.8 billion KRW, up 117.5 billion KRW from the previous year. The company attributes this to the expansion of profitable distribution channels, a significant increase in new product sales, reduction in selling and administrative expenses, and the establishment of an online multi-channel system.

Fashion Group Hyungji CI
Photo by Hyungji

Notably, the company strengthened its financial soundness by increasing new product sales by 31.1 billion KRW last year and reducing year-end inventory by 20.1% compared to the previous year. Selling and administrative expenses also decreased by 22 billion KRW year-on-year, and online sales recorded growth of over 200% compared to the previous year, contributing to improved efficiency.

Additionally, sales per store grew by 21.5%, and the sell-through rate, which indicates the proportion of produced goods sold, increased by 6.0%. This reflects successful internal management that reduced inventory?a key factor in financial soundness?by enhancing product competitiveness, reducing discounts, and increasing the proportion of full-price sales.

Sales revenue also grew by 12.4% compared to the previous year. In the first quarter of this year, sales revenue showed a 15% growth compared to the same period last year, and operating profit improved by 8 billion KRW.

A representative of Fashion Group Hyungji stated, "As a long-loved brand, even in challenging economic conditions, we will continue to enhance customer loyalty through products focused on cost-effectiveness and friendly store operations," adding, "The revival of Fashion Group Hyungji, the No. 1 women's wear company, will continue to take flight."

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