Ace Bed's Sales and Operating Profit Fall After One Year... Furniture Sales Grow

Ace Bed's sales and operating profit returned to a decline last year after just one year of recovery. Although furniture sales increased significantly due to the direct purchase of sofas, it was not enough to offset the overall performance downturn.

Ace Square store appearance. Ace Bed

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On March 9, Ace Bed announced that its consolidated sales for 2025 amounted to 317.3 billion won, with operating profit at 54.1 billion won. Sales decreased by 2.68% and operating profit by 18.29% compared to the previous year. The operating margin dropped slightly to 17.05% from 20.3% the previous year. Ace Bed had frozen bed prices since the end of 2022 and expanded experiential stores in an effort to turn sales around, but high exchange rates and rising raw material costs appear to have eroded profitability.

Last year, Ace Bed's core business-bed sales-fell by 6.2%. In contrast, the furniture segment grew by 41.1%. By segment, last year's sales were 273.1 billion won for beds (89.24%) and 34 billion won for furniture (10.72%). The decline in bed sales was due to a contraction in demand from new home move-ins and wedding gifts. Ace Bed is expected to focus its efforts on expanding bed sales to restore profitability.

Ace Bed's furniture sales reached an all-time high, increasing from 24.1 billion won in 2024 to 34 billion won last year. Since July 2024, Ace Bed has begun directly purchasing sofa brands ESSA and Jakomo and selling them at Ace Square. Previously, only sales commissions from consignment sales were reflected in revenue, but after switching to direct purchases, the entire sales amount was counted, leading to a sharp increase in furniture sales. However, the direct purchase of sofas operates on a structure that earns profit from intermediary margins, resulting in lower profitability compared to beds. In addition, luxury recliner brands such as 'Stressless', which Ace Bed imports and distributes, also contributed to the growth in furniture sales.

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The Ace Bed headquarters has pursued a strategy of purchasing or leasing land to establish large-scale stores under the 'Ace Square' initiative, setting lower rents than the surrounding area and leasing to franchise owners. Thanks to increased income from new land or building construction and rental revenue, Ace Bed's assets reached 818.4 billion won last year, up 4.6% from the previous year.

There is also growing interest in whether its sibling company, Simmons, will retain its position as the top bed company by sales this year, surpassing Ace Bed for a second consecutive year. Simmons recorded sales of 329.5 billion won and operating profit of 52.7 billion won in 2024, outperforming Ace Bed for two consecutive years. Since 2023, Simmons has maintained its lead in sales, expanding its scale through changes in distribution structure such as the shift to direct sales and strengthened marketing strategies.

Coway, which is categorized as a rental business, is also expanding its mattress division, raising the level of competition in the bedding industry. Coway's bed rental sales amounted to 365.4 billion won last year. Since launching its massage chair and mattress brand 'BIREX' at the end of 2022, Coway achieved sales of 316.7 billion won in 2024, solidifying its presence in the market.

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