[E-Daily Reporter Park Jung-Soo ] Hojeon(111110)announced on the 18th that it posted consolidated revenue of 111 billion won, operating profit of 4.3 billion won, and net income of 300 million won for the second quarter of this year.
Cumulative revenue for the first half of the year totaled 200.2 billion won, with operating profit at 2.9 billion won and net income at 900 million won. Net income turned from a loss in the same period last year to a profit due to an increase in foreign exchange-related gains resulting from exchange rate fluctuations.
According to the company, while the cost of goods sold improved in the first half, some revenue recognition was carried over to the third quarter due to delays in shipping schedules, which affected both revenue and operating profit. Increases in the local minimum wage in Indonesia and freight rates were also reflected in the results.
By buyer, sales showed a steady trend, particularly for growth brands. While sales of The North Face decreased slightly compared to the same period last year, sales from major buyers such as Arc’teryx and Under Armour (UA) increased significantly.
An official from Hojeon stated, “It is regrettable that the positive impact of improved cost of goods sold was not fully reflected in the first-half results, as revenue recognition for some shipments was deferred to the third quarter due to shipping delays,” adding, “In the third quarter, the recognition of revenue from the deferred shipments, along with expanded orders from Arc’teryx, will have a positive effect on our performance.”