[Edaily Reporter KYUNG GYEYOUNG ] The stock market boom in the first half of the year and the increase in foreign tourists visiting South Korea are leading to improved earnings for fashion companies, driven by department stores. As more customers visit department stores, this positive trend is spreading to companies such as SAMSUNG C&T CORPORATION(028260)and HandsomeCorporation(020000), which primarily operate their clothing brands in department stores.

According to industry sources on the 3rd, SAMSUNG C&T CORPORATION was the first among major fashion companies to release its second-quarter earnings. According to the second-quarter results announced on the 29th of last month, SAMSUNG C&T CORPORATION’s fashion division reported revenue of 593 billion won and operating profit of 54 billion won, representing increases of 16% and 64%, respectively, compared to the second quarter of last year.

HandsomeCorporation(020000), a fashion subsidiary of HYUNDAIDEPARTMENTSTORECO.,LTD, announced that day that its operating profit reached 4.6 billion won, a 525.0% increase compared to the same period last year. Revenue for the same period also rose 7.4% to 363.2 billion won.

All of these companies benefited significantly from the foot traffic generated by department stores. According to the Ministry of Trade, Industry and Energy’s retail sales trends, the year-over-year growth rate for department store sales reached 17.4% in the first quarter and 22.9% in the second quarter. From January to May of this year, sales in the women’s formal and casual wear and Namsung apparel categories at department stores also posted double-digit growth rates.

In the case of SAMSUNG C&T CORPORATION, first-half sales of its classic casual brand Beanpole—which accounts for a significant portion of its revenue—rose 10% compared to the first half of last year, while sales of its casual brand 8 Seconds also increased by 12% over the same period. Sales of its flagship imported brands, such as Le Mer and Issey Miyake, also showed an upward trend.

HandsomeCorporation also improved its performance, driven by strong department store sales. According to HandsomeCorporation, while offline sales rose 8.7% compared to the second quarter of last year, online sales increased by only 2.3%. This indicates that sales at department stores were the key driver. HandsomeCorporation explained that its core brands—such as Time, System, and The Cashmere—as well as new imported brands continued to show strong growth.

Expectations are also rising for another domestic fashion company set to announce its earnings. According to the average consensus forecast from securities firms compiled by FnGuide Inc. ( SHINSEGAE INTERNATIONAL(031430)), the company is expected to return to profitability in the second quarter with an operating profit of 11.2 billion won. While domestic brands, which are currently undergoing structural reforms, are expected to underperform, growth is projected to be driven primarily by imported brands such as The Row, Chrome Hearts, and UGG.

LF(093050)Hedges and Daks, which operate primarily through department stores, are also expected to drive an improvement in second-quarter earnings as they show growth. In particular, Daks saw its department store sales in May increase by 20% compared to the same month last year. The FnC Division of KOLON INDUSTRIES is also expected to see a recovery in earnings, led by its outdoor apparel segment.

An industry official stated, “Consumer sentiment recovered in the second quarter, and apparel sales increased, particularly in department stores,” adding, “Since sales have risen evenly across the board—from luxury goods to high-end imported brands, department store-exclusive private labels, and SPA (Specialty Store Retailer of Private Label Apparel) brands—the performance of most fashion companies is expected to improve significantly compared to the previous year.”