The second-quarter performance of four major furniture companies in South Korea varied significantly. Hansem and Shinsegae Casa both reported improvements in sales and operating profit. Hyundai Livart, despite a decline in sales, managed to increase its operating profit through cost efficiency. In contrast, Persis experienced a shift to an operating loss.
According to the Financial Supervisory Service's electronic disclosure system on August 15, Persis recorded an operating loss of 5.4 billion won in the second quarter, marking a transition to a deficit from the previous year. During the same period, sales rose by 6.4% to 87.6 billion won.
The prolonged slump in the domestic market has been analyzed as a factor contributing to the decline in demand for office furniture, which is Persis's core business.
A Persis representative stated, "We expect unfavorable business conditions to persist this year, but we aim to enhance customer experience through competitive quality and service proposals, solidifying our position in the domestic office furniture market." They added, "In the medium to long term, we plan to actively explore overseas opportunities to achieve growth and establish a global brand presence."
Hansem and Hyundai Livart both increased their operating profits despite a drop in sales. Hansem's consolidated sales for the second quarter were 417.2 billion won, a decrease of 9.2%, while its operating profit surged by 400.2% to 11.3 billion won.
Despite being the off-season for the home interior industry, business-to-consumer transactions showed resilience. The remodeling segment, which involves complete home renovations, saw a 13% increase in sales compared to the same period last year, driving the overall performance improvement.
A Hansem representative commented, "We have achieved 13 consecutive quarters of profit and a fivefold increase in operating profit year-on-year through healthy improvements in our fundamental competitiveness. We will continue to strengthen the competitiveness of our core products, enhance customer experience, and implement marketing focused on key products in the second half of the year."
Hyundai Livart reported a 9% decrease in sales to 373.1 billion won in the second quarter, but its operating profit rose by 9.4% to 5.6 billion won. Although the furniture business saw a 17.7% decline in sales due to a downturn in the construction and housing market, the company improved profitability by reducing selling and administrative expenses by 15.1%.
Shinsegae Casa achieved both revenue growth and a return to profitability. Its second-quarter sales reached 119.2 billion won, a 104.5% increase, while operating profit turned positive at 2.4 billion won. The acquisition of the 'Jaju' business segment from Shinsegae International in January this year is cited as a key factor behind this performance expansion.
A Shinsegae Casa representative stated, "We plan to continue expanding our customer experience through differentiated content and marketing that combines furniture with fashion and lifestyle, while strengthening the brand competitiveness of Jaju to sustain growth and improve profitability."
* This article has been translated by AI.
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