KakaoStyle "Q1 Sales Up Over 70% YoY"
Zigzag Transaction Volume Up About 15%·Traffic Up 20%
Operating Loss Significantly Reduced... Approaching Breakeven Point in April
KakaoStyle, the operator of the style commerce platform 'Zigzag,' announced on the 7th that its sales in the first quarter of this year increased by more than 70% compared to the same period last year.
The transaction amount of Zigzag in the first quarter increased by about 15% compared to the same period last year, and traffic such as monthly active users (MAU) also grew by about 20% during the same period.
Along with external growth in transaction amount, sales, and user traffic, operating losses were significantly reduced. KakaoStyle explained that its operating loss in the first quarter of this year decreased by more than half compared to the same period last year, and the ratio of operating loss to sales also improved by more than 50 percentage points compared to the same period last year.
KakaoStyle added that the expansion of categories covering fashion, beauty, and life, the growth of the fast delivery service 'Jikjin Delivery,' and portfolio diversification strategies such as 'Fashion by Kakao' and 'Posty' led to improvements in KakaoStyle's sales and profitability.
This trend continued into the second quarter, with KakaoStyle's operating loss ratio to sales in April this year approaching the break-even point (BEP) at about 10%. Since starting the Zigzag brand campaign in May, user traffic has also been rapidly increasing. According to IGAWorks' data analysis solution Mobile Index (Android + iOS), from May 15 to 30, Zigzag recorded the highest daily active users (DAU) among fashion platforms.
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Kim Young-gil, Chief Financial Officer (CFO) of KakaoStyle, said, "While continuing investments to strengthen IT, we are significantly reducing operating losses through service growth and marketing cost efficiency. Going forward, based on a stable financial structure and cash flow, we will strive to create a sustainable operating profit generation structure rather than a temporary profit turnaround."
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