Musinsa announced on the 28th that its second-quarter earnings amounted to sales of 377.7 billion won and an operating profit of 41.3 billion won. Compared to the same period last year, sales increased by 30.7% and operating profit by 22.6%, marking the highest second-quarter performance in history. During the same period, net income was 40.8 billion won, an increase of 462.8% compared to the second quarter of last year.
Cumulative sales for the first half of the year stood at 670.5 billion won, with operating profit at 58.9 billion won. These figures represent increases of 22.1% and 23%, respectively, compared to the first half of last year.
Net income for the first half of the year reached 37.2 billion won, a 1,945.8% increase compared to the same period last year. Musinsa noted that "the impact of the accounting policy change recognizing redeemable convertible preferred stock (RCPS) as a liability resulted in an interest expense of approximately 40 billion won reflected in the financial statements without actual cash outflow. Excluding this, net income for the first half of the year would be around 80 billion won."
Musinsa explained that despite the overall consumption slump in the second quarter of this year, categories such as fashion, beauty, and lifestyle showed balanced growth. Online, the combined sales from the 'Igu Week' at 29CM and Musinsa's 'Mujinjang Summer Black Friday' promotion event held consecutively in June recorded over 340 billion won in sales.
In the institutional sector, new stores were sequentially launched in the second quarter of this year, including ▲Musinsa Standard Triple Street Songdo branch (April) ▲Musinsa Standard Galleria Timeworld branch (May) ▲Musinsa Standard Shinsegae Premium Outlet Siheung branch (June) ▲Igu Home Seongsu (June). Musinsa opened nine new offline stores in the first half of the year and reported sales of over 100 billion won from offline stores.
Musinsa plans to expand its business in the second half of the year based on strengthened platform competitiveness and expanded offline hubs. Earlier this month, Musinsa unveiled the edited shop 'Musinsa Store Gangnam,' which features over 130 fashion brands. By the end of this year and early next year, a large edited store named 'Musinsa Mega Store' will open in Yongsan and Seongsu.
Musinsa will also embark on a full-scale effort to penetrate overseas markets. Recently, having finalized a joint venture (JV) establishment with Anta Sports, the largest sportswear group in China, Musinsa is expected to lead the online and offline operations of Musinsa Standard and Musinsa Store locally. The official name of the joint venture is 'Musinsa Shanghai Commercial Co., Ltd. (MUSINSA SHANGHAI).' Musinsa stated that the final transaction approval process by the authorities is expected to be completed within the third quarter.
Musinsa CEO Park Jun-mo said, "Although external uncertainties are expected to persist in the remaining second half of the year, we will proceed with planned investments in growth sectors such as global, beauty, lifestyle, and re-commerce without disruption to flexibly respond to market conditions."