LF Q3 Operating Profit Falls 70% on Real Estate Base Effect; Fashion Unit Posts 79% Jump
Creatrip Team
4 months ago
LF reported Q3 consolidated sales of KRW 398.6 billion and operating profit of KRW 16.1 billion, declines of 17.1% and 70.1% year-on-year, respectively. Net profit dropped 32% to KRW 26.5 billion. The company attributed the overall decline to a base effect from last year’s one-off REIT (real estate investment trust) asset sale by Koramco Asset Trust. Meanwhile, LF’s core fashion division performed well: standalone fashion sales were KRW 231.0 billion (down 5.9%), but fashion operating profit rose 79.2% to KRW 9.5 billion. LF credited improved demand forecasting, inventory efficiency, diversified product lines including young lines and collaborations, a responsive production system, and expanded overseas sales for the fashion gains. The company said it will focus on seizing demand in the peak fourth quarter and on product differentiation to maximize revenue and profitability.
