Fashion corporations F&F are expected to generate more than 1 trillion won in sales this year in China alone on the back of the popularity of its core brand MLB. As apparel consumption in China has been recovering since the start of the year, local sales of MLB products such as caps and shoes have been strong. F&F, building on MLB's performance in China, is also accelerating overseas expansion of follow-up brands such as Discovery Expedition.
On the 7th, according to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART), F&F posted consolidation-based first-quarter revenue of 560.9 billion won and operating profit of 153.5 billion won. Compared with a year earlier, revenue rose 10.9% and operating profit climbed 24.2%. In particular, revenue at the China subsidiary came to 303.1 billion won, up 17.2% on-year, leading the overall improvement.
F&F's first-quarter results in China partially reflected the effect of shipping products such as caps and shoes in advance ahead of the spring-summer season. However, in line with the recovery in apparel consumption in China, results were said to have far exceeded brokerage expectations. In the first quarter of this year, China's retail sales of apparel reached 412.2 billion yuan (about 88 trillion won), up 9.3% from a year earlier.
Buoyed by this trend, F&F is expected to generate more than 1 trillion won in sales this year in China alone. F&F's China subsidiary, F&F China, recorded 960.3 billion won in revenue last year.
F&F China's performance is being driven by F&F's core brand MLB. MLB is a licensed brand that F&F develops using the intellectual property (IP) of Major League Baseball in the United States. F&F launched MLB in Korea in Jun. 1997, and in Feb. 2010 it also introduced the MLB Kids line. F&F has expanded MLB beyond simple baseball merchandise into a lifestyle fashion brand encompassing caps, apparel, shoes and bags.
F&F's overseas expansion has also proceeded around MLB. F&F established a Hong Kong subsidiary in Sep. 2017 to enter Asian markets such as Hong Kong, Macao and Taiwan, and in 2019 set up a China subsidiary to widen distribution channels to China.
In the early stage of entering China, F&F began sales mainly through online channels. But as local response picked up faster than expected, it aggressively increased offline stores. At the time in China, recognition of MLB caps had formed through Korean variety shows and duty-free sales. The fact that it is a brand based on Major League Baseball in the United States is also cited as a factor that local consumers found familiar.
Riding this trend, F&F China's revenue steadily increased from 11.9 billion won in 2019 to 305.4 billion won in 2021, 581.0 billion won in 2022, 813.2 billion won in 2023, 857.8 billion won in 2024 and 960.3 billion won in 2025.
F&F is recently focusing on improving efficiency at existing stores rather than quantitative store openings, seeking growth in both sales and profitability. According to NH Investment & Securities, F&F's first-quarter sales per existing store are estimated to have increased 15% on-year. The number of MLB stores in China is projected to rise slightly from 1,078 at the end of last year to 1,094 by the end of this year.
F&F is also expanding the China rollout of its in-house brand Discovery Expedition. Discovery Expedition is a licensed brand that F&F launched in Korea in Mar. 2012. It presents products that reinterpret the exploration and travel image of the global documentary channel "Discovery" (Warner Bros.) into fashion.
After securing the exclusive Asia license for Discovery Expedition in Jul. 2024, F&F opened the first offline store in Changchun, China, in Nov. of the same year. The number of Discovery stores in China jumped from five at the end of 2024 to 23 last year and is projected to increase to 40 by the end of this year.
Brokerages expect F&F's improvement trend to continue for the time being, backed by growth at the China subsidiary. KB Securities analyst Ryu Eun-hye said, "First-quarter results far exceeded market expectations as improvements in Korean and Chinese consumer sentiment coincided with business restructuring effects," adding, "The second quarter is a relative off-season, but the tailwind will continue with an increase in inbound tourists and a recovery in Chinese consumption."