LF, Q1 Operating Profit 11.8 Billion KRW... 75% Decrease YoY

LF recorded poor performance in the first quarter of this year.

LF. [Photo by LF]

According to the Financial Supervisory Service's electronic disclosure system on the 16th, LF's consolidated operating profit for the first quarter was 11.8 billion KRW, a 75% decrease compared to the same period last year.

First-quarter sales amounted to 441.4 billion KRW, down 2% from the same period last year. Net profit for the period was recorded at 13.4 billion KRW.

By business segment, the fashion business saw sales grow by about 9% year-on-year, driven by strong performance of mega brands such as Hazzys and Daks, as well as newly launched brands like Reebok, despite ongoing economic uncertainties.

The food-related business also saw sales increase by approximately 23%, supported by strong demand for home dining HMR products.

However, the real estate business underperformed due to a decline in sales from disposals such as the Koramco Trust REITs amid a sluggish real estate market. The sales proportion of the real estate segment (financial business), which was 12% last year, dropped to 4% in the first quarter.

An LF official stated, "We will continue investing in branding to build fandom centered on mega brands and support the growth of new brands such as Reebok and Patu to maintain a stable fashion business. Through stable risk management, the real estate segment is expected to stabilize its performance in the second half of the year."

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