What Happened? F&F’s Q2 2025 Earnings Release

F&F reported consolidated revenue of KRW 378.9 billion, operating profit of KRW 84 billion, and net income of KRW 62.8 billion for Q2 2025. While operating profit surpassed market forecasts, revenue declined compared to the previous quarter.

Why the Ups and Downs?

Positive Factors:

  • • Improved operating profit margin due to enhanced cost management and increased sales of high-value-added products.
  • • Success of overseas expansion strategy for owned brands (DUVETICA, SUPRA, SERGIO TACCHINI), especially SERGIO TACCHINI’s growth in the North American market.

Negative Factors:

  • • Continuous decline in sales due to seasonal factors and the impact of domestic and international economic slowdown.
  • • Pressure on profitability due to rising raw material prices and exchange rate fluctuations.
  • • Continued global economic slowdown and uncertainties surrounding China market entry.

Future Stock Outlook and Investment Strategy

While there is a possibility of a short-term stock price increase due to improved operating profit, the continued decline in sales and macroeconomic uncertainties could limit long-term stock gains. Investors should closely monitor sales recovery, raw material prices and exchange rate fluctuations, and global economic trends. Careful investment decisions based on analysis of F&F’s mid-to-long-term growth strategy and past data are crucial.