1. What Happened at Gongguwoman?

Gongguwoman saw a decline in both sales and profits in the first half of 2025. Sales decreased by 12.5% year-on-year to KRW 22.287 billion, and operating profit fell by 26.6% to KRW 3.604 billion.

2. Reasons for the Sluggish Performance

Several factors contributed to this decline, including intensified competition in the online fashion market, difficulties in establishing a foothold in overseas markets, and increased investment costs in new businesses. However, there are also positive aspects. Financial soundness improved, with a decrease in debt-to-equity ratio and an increase in current ratio.

3. Gongguwoman’s Future Strategies

  • Global Market Expansion: The company is accelerating its overseas expansion, focusing on Asian markets such as China, Japan, and Taiwan. The opening of a physical store in Taipei, Taiwan is a notable achievement.
  • Business Diversification: Through the acquisition of the YUSE brand and the business transfer of Jogunshop, Gongguwoman is expanding its business portfolio from women’s wear to menswear and designer brands.
  • D2C Strengthening and R&D Investment: The company is strengthening its D2C model centered on its own online mall and continuing R&D investments to enhance competitiveness.

4. Action Plan for Investors

Despite short-term challenges, Gongguwoman has long-term growth potential. However, investment requires caution. It is crucial to carefully monitor the performance in overseas markets, synergy effects of new businesses, and improvements in profitability before making investment decisions.