TBH Global Posts 47.3 Billion Won in Q1 Sales, Up 17% YoY...Online Growth Fuels Q2 Profitability Expectations

TBH Global continued its growth in scale and profitability in the first quarter, driven by strong sales of key brands and the success of its online-focused strategy.

K-fashion specialist TBH Global announced on May 8 that its consolidated sales for the first quarter of this year reached 47.3 billion won, an increase of approximately 17% compared to the same period last year.

This growth was led by core brands such as Mind Bridge and Basic House. Mind Bridge saw its first-quarter sales rise by about 16% year-on-year, while Basic House achieved a remarkable increase of approximately 107.6%. The company explained that Mind Bridge benefited from expanded online and womenswear line sales, while Basic House's performance was boosted by increased supply to Daiso.

The company’s online D2C (direct-to-consumer) strategy is also bearing fruit. TBH Global’s first-quarter online sales grew by 29.19% year-on-year, and sales through its own online mall increased by approximately 16.38%. The company stated that it will continue to strengthen its online-focused sales strategy to maintain brand value and enhance profitability.

Profitability also showed signs of improvement. TBH Global recorded an operating loss of 900 million won for the first quarter, an improvement of about 1.9 billion won compared to the same period last year. The company explained that this result reflected the impact of a "big bath" taken during last year's restructuring process, including the discontinuation of its luxury goods business.

However, the company emphasized that this loss is effectively the final impact from restructuring, with no additional expected losses to be reflected. Excluding this factor, the company noted that the first-quarter operating profit was close to the break-even point (BEP).

With its core business competitiveness recovering, TBH Global expects to turn profitable starting in the second quarter. Although the company recorded a net loss of 2.4 billion won in the first quarter, it attributed this to one-off factors such as foreign exchange losses and translation losses resulting from a stronger currency. In contrast, key business indicators such as sales and operating profit continue to show improvement.

The company anticipates further sales growth from the second quarter onward, driven by the expanded sale of functional summer products. In particular, the Mind Bridge knitwear line, which launched exclusively on Musinsa in April, saw some items sell out quickly, indicating a positive consumer response.

A TBH Global representative stated, "We expect significant top-line growth this year, centered on Mind Bridge, which is targeting annual sales of 150 billion won, and Basic House, which has successfully expanded its distribution channels. Company-wide efforts to improve management efficiency, such as the introduction of AI, will also contribute to improved profitability."

Meanwhile, TBH Global is also strengthening its shareholder return policy, reflecting growing expectations for improved performance. The largest shareholder and executives have continued to purchase company shares, and it was disclosed that on April 27, affiliate Geumgang Leisure Industry purchased an additional 11,587 shares of TBH Global on the open market.

Based on the growth of its core brands and the success of its online D2C strategy, TBH Global is simultaneously pursuing scale expansion and improved profitability, further raising expectations for a turnaround to profitability in the second quarter.

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