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MUSINSA's 40% Growth Defies Sluggish Fashion Market

Source: Musinsa

Seoul, South Korea—MUSINSA reported a significant increase in annual revenue for the fiscal year that ended December 31 despite challenging domestic and international markets. 

The company's standalone revenue reached approximately KRW 892.8 billion (USD 651.8 million), an increase of 36.9% over the previous year.

MUSINSA's performance comes amid a sluggish domestic fashion market. 

According to the National Statistical Office, the online fashion sector grew only 4.45%. 

The company's growth has been attributed to its online platforms, including MUSINSA and 29CM, its global operations, and its brand, 'Musinsa Standard.'

However, MUSINSA's separate operating profit decreased by 40% to approximately KRW 37.5 billion (US$27.4 million), mainly due to a one-time increase in employee stock compensation expense. 

Nevertheless, the company's EBITDA margin remained robust at 12%, and it achieved a net income of approximately KRW 35.9 billion (US$26.2 million) in 2023, compared to a net loss of KRW 6.7 billion (US$4.9 million) in the previous year.

On a consolidated basis, including subsidiaries, MUSINSA's revenue will reach approximately KRW 1 trillion (US$732.9 million) in 2023, an increase of 40.2% compared to 2022. 

The company plans to focus on cost-effective growth through strategic planning in various areas, including branded businesses, offline expansion, global expansion, and its limited edition "soldout" platform.

With cash and cash equivalents totaling approximately KRW 424.6 billion (US$309.9 million) at the end of 2023, MUSINSA is well-positioned to explore strategic measures for long-term growth and revenue generation.