LF Boosts Profit 34% with AI and Cost Discipline Despite Sales Drop
Creatrip Team
a month ago
LF reported a 3.8% drop in 2025 consolidated sales to KRW 1.8812 trillion but a 34.3% rise in operating profit to KRW 169.4 billion. The company credited improved profitability to tighter inventory management, demand forecasting powered by AI, and a focus on operational discipline rather than aggressive expansion. Executive leadership promoted AI adoption—Vice Chairman Oh Gyusik urged company-wide digital and AI initiatives to strengthen core competitiveness, and President Kim Sanggyun launched an internal 'AI Work Innovation Challenge' to encourage practical AI use. AI-driven marketing and operations produced concrete gains: targeted AI model images boosted a rain-season campaign’s related sales eightfold, an AI-assisted video lifted product sales 500%, and AI automation sped up LF Mall content work about ten times. LF plans to expand its Hedgis Kids (헤지스 키즈) line to position Hedgis as a family brand, leveraging the 'VIB (Very Important Baby)' trend, and accelerate global expansion with new stores and market entries across Asia, India, Hong Kong and Europe to grow K-fashion presence.
