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Photo courtesy of Samsung C&T |
[Alpha Biz= Paul Lee] SEOUL, South Korea – July 21, 2025 – Samsung C&T’s Fashion Division reported revenue of KRW 510 billion and operating profit of KRW 33 billion in the second quarter of 2025, representing a 0.58% decline in sales and a 36.5% drop in operating profit compared to the same period last year.
Since surpassing KRW 2 trillion in annual revenue in 2022, sales have remained relatively stable; however, operating profit has been on a downward trend. The division’s 2024 full-year operating profit fell 12.4% year-on-year to KRW 170 billion, with further declines of 37% in Q1 and 36.5% in Q2 this year.
Industry experts attribute the slump in profitability to weakened consumer sentiment amid economic slowdown, abnormal weather patterns dampening seasonal demand, and intensifying competition from emerging brands through online fashion platforms.
While peers such as Shinsegae International, LF, and Handsome are pursuing new growth strategies, including K-beauty expansion and overseas market entry, Samsung C&T’s Fashion Division has yet to show a clear turnaround. Despite initial expectations following the return of President Lee Seo-hyun in April 2024, the unit has not yet delivered significant performance improvements.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
