[Edaily Reporter Kim Hyung-il ] TBH GLOBAL(084870), a company specializing in K-fashion, announced on the 10th that it returned to profitability in the third quarter of this year on a cumulative consolidated basis, posting an operating profit of 2.4 billion won and a net profit of 1.4 billion won compared to the same period last year. Revenue for the same period increased by 11.1% to 137.5 billion won.

This improvement in performance is attributed to increased sales of major brands such as MindBridge and Basic House, as well as the growth of online distribution channels. In particular, the company stated that reduced distribution costs and more efficient inventory management resulting from the expansion of online sales contributed to the improved profitability.

According to TBH GLOBAL, total brand sales through the third quarter of this year increased by approximately 10% compared to the same period last year. MindBridge, the company’s flagship brand, saw sales rise by 11.5% thanks to expanded sales of its women’s apparel line. It demonstrated standout growth among the major brands and led the overall improvement in performance.

Growth in online channels also continued. Cumulative online sales for the third quarter rose 27.1% year-over-year. TBH GLOBAL explained that as the share of online sales expanded, the burden of distribution costs decreased, which had a positive impact on profitability.

Inventory management efficiency also improved. As of the end of the third quarter of this year, inventory assets decreased by 10.3% compared to the same period last year. TBH GLOBAL assessed that inventory management and operational efficiency improvements—achieved through measures such as the adoption of artificial intelligence (AI)—contributed to reducing inventory burdens.

TBH GLOBAL expects this growth trend to continue in the fourth quarter as the company enters the fall/winter (FW) season, the fashion industry’s peak season. Sales of winter items—such as coats and lightweight down jackets, which have relatively high average selling prices—are expected to ramp up in earnest starting at the end of this month. The company anticipates that as the share of winter merchandise sales increases, it will help improve overall profit margins alongside a rise in average transaction value.

The company is also pursuing expansion into overseas markets through new brands. “Time Out,” a K-cross-border licensed brand, is scheduled for a pilot launch this month in four countries—including South Korea, Japan, the United Kingdom, and China—with a focus on online sales. “Cross-border” refers to a business model that sells products across national borders.

In China, the company will launch the contemporary casual brand “MARCBRICK” in collaboration with its local partner, Duoyi. The company aims to hold a local pop-up store this December and plans to open a permanent store in the first half of next year. This strategy is intended to diversify the company’s revenue structure, which has traditionally been centered on existing brands.

The company’s recently acquired in-house production facility in Vietnam is also cited as a factor that will contribute to future earnings growth. For the first time since its founding, TBH GLOBAL has secured its own production base and is working to strengthen its Just-in-Time (JIT) system. Just-in-Time production is a method of manufacturing necessary products at the appropriate time to meet sales demand; it offers the advantage of reducing unnecessary inventory and enabling a swift response to changes in demand.

TBH GLOBAL intends to utilize its Vietnamese production facility to flexibly adjust production volumes in line with sales trends and shorten the lead time required for additional production of popular products. In addition to producing its own brand products, the company is also conducting original equipment manufacturing (OEM) operations to produce products for other brands, and expects this to be partially reflected in its consolidated earnings as early as the fourth quarter.

A TBH GLOBAL official stated, “Amid continued strong sales for major brands, MindBridge is maintaining a high growth trajectory, driven in part by expanded performance in its women’s apparel line,” adding, “If the current growth trend is combined with strong sales of winter merchandise, we expect MindBridge to reach annual sales of 150 billion won as a single brand sooner than anticipated.”

The spokesperson continued, “We plan to successfully establish ‘Time Out,’ which we are launching in full swing this month, in the market and cultivate it into another major brand,” adding, “Based on our production facilities in Vietnam, we will enhance production efficiency and our ability to respond to demand, thereby continuing to improve not only our revenue growth but also our profitability.”