Fashion platform Musinsa reports significant financial growth in 2023, with sales exceeding 1 trillion won for the first time, driven by robust performance and strategic initiatives.
Fashion platform Musinsa has reported significant financial growth for the year 2023, marking a pivotal moment in its history as it exceeded 1 trillion won in sales for the first time. On March 31, Musinsa announced its annual transaction volume reached 4.5 trillion won, reflecting a robust performance across its various divisions.
The company’s consolidated sales totaled approximately 1.24 trillion won, representing a year-on-year increase of 25.1%. Musinsa also achieved an operating profit of 102.8 billion won and a net profit of 69.8 billion won, demonstrating a remarkable turnaround after experiencing a net loss of 8.6 billion won in 2022. This financial success underscores Musinsa’s strategic initiatives and the strengthening of its operational framework.
Breaking down the sales figures, the company saw commission sales amounting to 485.1 billion won, an increase of 24.3%, while product sales reached 376 billion won, growing by 15%. Additionally, product sales, which are separate from commission sales, were recorded at 338.3 billion won, reflecting a notable rise of 29.9%. Even when considering separate financial statements that exclude affiliates, sales at Musinsa’s headquarters were reported at 1.1 trillion won, marking a 24.6% increase from the previous year.
The reported growth is largely attributed to the strong performance of domestic designer brands on platforms like Musinsa, 29CM, and Global, as well as an expansion into new categories such as beauty, sports, and home goods. Furthermore, Musinsa’s offline initiatives, including the expansion of Musinsa Standard— which opened 14 new stores last year and attracted 12 million visitors—also played a crucial role in boosting sales. The offline sales for Musinsa Standard reportedly increased more than threefold compared to 2022.
Musinsa’s financial restructuring has also contributed to its success, with EBITDA rising significantly to 19.1 billion won, more than double the previous year’s figure. Notably, costs associated with employee stock compensation saw a significant reduction, dropping by 60.8% from 40.6 billion won in 2022 to 15.9 billion won in 2023.
Going forward, Musinsa plans to enhance its technology infrastructure and recruit talents to further develop its major platform services, including Musinsa, 29CM, and Global. The company also aims to invest more in global logistics to support K-fashion brands’ entry into international markets.
Park Joon-mo, CEO of Musinsa, commented on the financial results, stating, “We have continuously found and fostered fashion and lifestyle brands that lead trends last year to achieve sales growth, and based on this, we have successfully expanded categories to beauty, sports, and home.” He emphasized the company’s commitment to increasing investment to elevate the visibility of K-fashion brands both offline and globally.
Source: Noah Wire Services
