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Musinsa defies market trends to post record Q2 earnings

Published: 29 Aug. 2025, 19:39

A Musinsa Standard branch that newly opened in Starfield Market Ilsan in Goyang, Gyeonggi, on Aug. 29. [MUSINSA]

Despite an overall downturn in the fashion industry, online fashion platform Musinsa has asserted its presence as a profit-churner by enhancing competitiveness both online and offline.

Musinsa posted record quarterly earnings in the second quarter, with both revenue and operating profit growing by double digits. Its operating margin was about 11 percent, far higher than the industry average of around 4 percent.

The company said Friday that its second quarter revenue rose 30.7 percent on year to 377.7 billion won ($271 million), while operating profit climbed 22.6 percent to 41.3 billion won.

It was the highest quarterly performance in the company’s history. For the first half of the year, Musinsa logged 670.5 billion won in revenue and 58.9 billion won in operating profit, increases of 22.1 percent and 23 percent, respectively, from the same period last year.

Growth in both revenue and profit was driven by strong performances in both online and offline channels. Musinsa opened nine additional offline stores in the first half, bringing the total to more than 40 since opening its first in 2021.

Sales across its 40-plus stores surpassed 100 billion won in the first half, with half of that generated by its in-house brand, Musinsa Standard, according to the company. The brand now has 29 stores, including a new location in Starfield Market Ilsan in Goyang, Gyeonggi, which opened on Friday.

Musinsa's logo [MUSINSA]

Musinsa’s online platform, which hosts more than 10,000 brands, accounts for over half of the company’s total sales. A sales event in June, held jointly with affiliate platform 29CM, alone generated 340 billion won.

“The simultaneous growth in revenue and profit and the achievement of a double-digit operating margin reflect our efforts to quickly strengthen competitiveness both online and offline,” a Musinsa spokesperson said.

Musinsa plans to expand further by opening large multibrand “Musinsa Megastores” in Yongsan District, central Seoul, and the Seongsu neighborhood of Seongdong District, southern Seoul, later this year and early next year, while also pushing into overseas markets.

The rest of the fashion industry has struggled amid weak domestic consumption. The size of the domestic fashion market between March and May this year was 26.9 trillion won, down 8.2 percent from the same period last year, according to the Korea Federation of Textile Industries.

Samsung C&T’s fashion division reported revenue of 510 billion won in the second quarter, a slight 0.58 percent decrease, while operating profit dropped 36.54 percent to 33 billion won.

A Musinsa Standard branch in Dongseong-ro, Daegu [JOONGANG ILBO]

LF’s fashion division, including affiliates, posted revenue of 348.2 billion won, down 6 percent year on year, but operating profit rose 62 percent to 28.5 billion won.

Handsome, part of the Hyundai Department Store Group, saw revenue fall 1.1 percent to 338.1 billion won and operating profit plunge 82 percent to 700 million won, with an operating margin of just 0.2 percent.

Shinsegae International recorded revenue of 308.6 billion won, down 3.8 percent, and an operating loss of 2.3 billion won. Kolon FnC posted revenue of 296.4 billion won, down 9.2 percent, with operating profit sinking 53.4 percent to 7.5 billion won.

Other online fashion platforms have also struggled with profitability. Kakao Style, operator of Zigzag, and W Concept both posted operating margins in the 1 percent range last year.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LIM SUN-YOUNG [[email protected]]