Fashion company F&F reported a decline in both sales and operating profit for the third quarter of this year, attributing the decrease to adjustments in local supply levels in the Chinese market.
F&F announced on November 10 that its consolidated operating profit for the third quarter was 108.4 billion won, a 15.3% decrease compared to the same period last year. Sales fell to 452.1 billion won, while net profit dropped by 34.6% to 65.9 billion won.
Overseas sales also saw a decline, down 5.4% year-on-year to 310.8 billion won. Sales in China amounted to 272.4 billion won, a decrease of 4.1%, while sales in Europe and the United States fell by 60.2% to 6.4 billion won.
F&F explained that the adjustments in local supply levels were made to enhance the inventory health of the MLB brand in China. As the supply adjustments are nearing completion in the third quarter, the company anticipates a normalization of local supply in the fourth quarter.
Additionally, F&F held a board meeting on the same day and decided to retire 825,501 shares of its treasury stock, amounting to approximately 59 billion won, which represents about 2.2% of its total issued shares. This move is aimed at enhancing corporate value and returning profits to shareholders.
Meanwhile, F&F plans to expand its business from lifestyle outdoor to the active wellness sector and develop a lifestyle clothing brand with enhanced functionality.
* This article has been translated by AI.
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