신원 said on the 18th that under consolidation in the second quarter it posted sales of 309.9 billion won and operating profit of 7.5 billion won. Sales rose 11% from a year earlier, and operating profit surged 644%. Breaking 300 billion won in quarterly sales is a first since its founding in 1973.
On a cumulative first-half basis, it also logged record half-year results with sales of 590.7 billion won and operating profit of 13.8 billion won. Compared with a year earlier, sales rose 10% and operating profit increased 92%. The company said simultaneous growth in the export division and the domestic fashion division strengthened global supply chain competitiveness and enhanced brand value, which fed through to results.
Exports drove the results. Second-quarter sales rose 11% from a year earlier, and operating profit surged 217%. For the first half, sales were 493.8 billion won and operating profit 13.4 billion won, accounting for 83.6% of total sales. 신원 manufactures and exports knits and sweaters for more than 20 fixed buyers such as GAP, Walmart and Target from nine overseas production bases, including Guatemala, Vietnam, Indonesia and Nicaragua, using original design manufacturing (ODM) and original equipment manufacturing (OEM).
신원 is pursuing a nearshoring strategy to diversify production hubs to regions close to consumer markets. It is expanding production infrastructure and lines in Latin America while allocating roles with existing Asian production bases. The company said total orders increased as orders from major global buyers continued and new buyer transactions grew, and utilization rates and output at key production bases also rose.
The domestic fashion division returned to the black. With first-half sales of 97 billion won and operating profit of 450 million won, it escaped an operating loss of 3.85 billion won in the same period last year. It also posted a 600 million won surplus in the second quarter.
By brand, the menswear label ZIOK continued sales growth at large premium outlets, and Fahrenheit improved both scale and profitability through online marketing using exclusive model Kim Woo-bin and by diversifying sales channels. The womenswear label Vesti Velli saw new road shops drive sales and expanded large-scale events at major shopping malls such as Starfield Unjeong. C rolled out tailored promotions by commercial district, centered on road shops. The imported Italian luxury brand Canali raised VIP customer repurchase rates by operating both global collections and products tailored to Korean body types.
Vice Chairman Park Jeong-bin of 신원 said, "These results are the outcome of concurrent growth as the export division and the domestic fashion division each strengthened business competitiveness," adding, "We will continue to advance our business structure and add momentum to the growth trend to sustain stable revenue improvement."