PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩700 per share · Prices as of the 2026-10-02 close
LF saw fashion revenue stagnate while non-fashion segments such as real estate finance and food drove profit growth, with both operating profit and net income posting double-digit increases in 2025.
Consolidated revenue declined year over year in 2025, but operating profit and net income attributable to owners both rose sharply, underscoring profitability-focused growth.
In the first quarter of 2026, consolidated revenue rose 7.4% year over year and operating profit increased 47.5%, extending the earnings improvement trend.
Fashion accounts for the largest share of revenue at 72.4%, but the real estate finance segment contributes a substantial share of pre-tax profit.
B2B revenue for core brands such as Hazzys in North America grew significantly year over year, signaling progress in overseas expansion.
The Gasan-dong data center project vehicle posted a net loss in 2025, leaving the timing of investment payback as a key point to watch.
LF is a lifestyle company organized around three business segments: fashion, finance, and food. The fashion segment operates menswear, womenswear, sportswear, and imported brands including Hazzys, Daks, Jill Stuart, Barbour, Dunst, and TNGT, along with the cosmetics brand ATHE.
The finance segment covers real estate trust and REIT asset management through Koramco Asset Trust and Koramco Asset Management, while the food segment is centered on food ingredient distribution through subsidiary LF Foods.
As of 2025, fashion accounted for 72.4% of revenue, food 16.7%, and real estate finance 10.3%, meaning fashion still drives top-line scale. By contrast, segment pre-tax profit reached 155.7 billion won for fashion and 63.3 billion won for real estate, while the food segment posted a pre-tax loss of 5.0 billion won.
LF competes against major domestic fashion players including Samsung C&T Fashion, Hyundai's Handsome, Shinsegae International, and Kolon FnC, and the industry landscape has also been reshaped recently by the rise of SPA brands and Korean beauty ODM manufacturers.
LF has restructured its brand portfolio by discontinuing underperforming lines such as TIPICOSY and Random Golf Club. More recently, the company has expanded into asset-based new business through the K-Square Data Center development project in Gasan-dong, Geumcheon-gu, Seoul.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩455.7B | ₩44.3B | 9.7% |
| 2025Q3 | ₩398.6B | ₩16.1B | 4.0% |
| 2025Q4 | ₩597.8B | ₩77.6B | 13.0% |
| 2026Q1 | ₩461.9B | ₩44.4B | 9.6% |
| 2026Q2 | ₩465.4B | ₩44.1B | 9.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2T | ₩185.2B | ₩152.3B | 9.4% | 10.4% | 56.0% |
| 2023 | ₩1.9T | ₩57.4B | ₩82.5B | 3.0% | 5.4% | 60.8% |
| 2024 | ₩2T | ₩126.1B | ₩75.5B | 6.4% | 4.8% | 64.4% |
| 2025 | ₩1.9T | ₩168.1B | ₩98.9B | 8.9% | 6.1% | 63.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
LF's annual results moved from a strong 2022 with revenue of 1,968.5 billion won and operating profit of 185.2 billion won (9.4% operating margin) to a sharp contraction in 2023, when revenue fell to 1,900.7 billion won and operating profit collapsed to 57.4 billion won (3.0% margin).
The company then entered a recovery phase, with 2024 revenue of 1,956.3 billion won and operating profit of 126.1 billion won (6.4% margin), followed by 2025 revenue of 1,882.4 billion won—a slight decline—alongside operating profit improving to 168.1 billion won (8.9% margin).
Net income attributable to owners also expanded, moving from 82.5 billion won in 2023 and 75.5 billion won in 2024 to 98.9 billion won in 2025, confirming a clear profit recovery.
On a quarterly basis, the third quarter of 2025 was notably weak, with revenue of 398.6 billion won and operating profit of only 16.1 billion won, while the seasonally strong fourth quarter rebounded sharply to revenue of 597.8 billion won and operating profit of 77.6 billion won.
Moving into 2026, operating profit held in the 44 billion won range for two consecutive quarters—44.4 billion won in the first quarter and 44.1 billion won in the second—while net income attributable to owners rose sequentially from 29.5 billion won in the first quarter to 31.9 billion won in the second.
Over the trailing four quarters from the third quarter of 2025 through the second quarter of 2026, cumulative net income attributable to owners reached 113.4 billion won, already exceeding the full-year 2025 figure.
Operating cash flow also strengthened markedly, rising from 92.6 billion won in 2023 to 270.2 billion won in 2025, indicating an improved conversion of earnings into cash.
In 2025, Korea's fashion industry experienced its first simultaneous downturn among major players since the COVID-19 pandemic, driven by weak consumption amid high prices, a strong won-adjusted import cost burden, and unusually warm weather.
All five major fashion companies—Samsung C&T Fashion, Handsome, LF, Shinsegae International, and Kolon FnC—posted declines on a cumulative third-quarter basis, with LF's third-quarter revenue falling 17.1% and operating profit plunging 70% year over year.
On a full-year basis, however, LF was among the few companies that improved operating profit despite lower revenue through cost efficiency measures.
Across 49 listed fashion companies, overall 2025 revenue grew modestly, but the improvement in operating profit was concentrated among a limited number of firms, with LF included in a group of nine companies that raised operating profit despite declining sales through cost efficiency.
Within the broader industry, value-oriented SPA brands such as Uniqlo, Top Ten, and Spao, along with Korean beauty ODM manufacturers such as Cosmax and Kolmar Korea, continued to post relatively resilient growth, while mid-priced premium brands bore the brunt of polarized consumer spending.
LF appears to be benefiting from a trend in which demand for premium brands such as Hazzys and Daks is increasingly concentrated in department store channels.
Building on the 'brand-centered management' and 'global expansion' strategy laid out for 2025, LF has stated it plans to further diversify product lines within fashion brands and accelerate global expansion in 2026.
The company said that, building on results confirmed in the fashion segment in 2025, it will focus in 2026 on lifting the competitiveness of its overall portfolio, including non-fashion segments.
Overseas, the global wholesale business expanded since 2022 has grown into partnerships with roughly 70 overseas buyers across 20 countries, while the cosmetics brand ATHE is using Japan and Vietnam as test markets, expanding into local retail networks and online platforms.
Indeed, first-quarter 2026 results showed that core brands such as Hazzys, Daks, and Jill Stuart maintained stable sales across all product categories, driving the earnings improvement.
The Gasan-dong data center project, being built by Hyundai Engineering & Construction, is expected to reveal whether it contributes new revenue once construction is completed and operations ramp up.
In the finance segment, performance fees and dividend income from Koramco Asset Trust's REIT asset sales have contributed significantly to recent profit improvement, leaving the sustainability of these non-recurring factors as an important variable going forward.
LF's profit scale has moved through a trough in 2023 and continued recovering through 2024 and 2025, with net income attributable to owners over the trailing four quarters already exceeding the full 2025 annual figure.
Reflecting this profit recovery, the earnings multiple implied at the current share price sits below the upper end of the multi-year historical trading band. Relative to net assets, the shares trade below stated book value per share, implying a comparatively modest multiple against asset value.
The company has maintained a track record of paying annual cash dividends, and how non-recurring profit factors from the real estate and finance segments feed into future dividend capacity remains a point to watch.
That said, stagnant core fashion revenue and the risk of delayed payback on new business investments such as the data center are factors that should be weighed alongside the earnings multiple.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Operating margin, which had fallen to 3.0% in 2023, recovered to 8.9% in 2025, and operating profit remained in the 40 billion won range in both the first and second quarters of 2026, improving earnings stability.
Operating cash flow also grew sharply from 92.6 billion won in 2023 to 270.2 billion won in 2025, indicating an improvement in earnings quality as well. This appears to reflect a combination of cost efficiency measures and strengthened brand competitiveness.
While fashion accounts for 72.4% of revenue, pre-tax profit has been increasingly shaped by the real estate finance segment. Koramco Asset Trust alone generated 57.1 billion won in net income in 2025, becoming a key driver of company-wide profit improvement.
Having a revenue source that operates somewhat independently of the fashion business cycle can be viewed as a factor moderating earnings volatility.
B2B revenue for core brands such as Hazzys in the United States grew 110% year over year in 2025, and total North American revenue grew 100%. The cosmetics brand ATHE has been expanding its test markets in Japan and Vietnam through local retail networks and online platform listings. Global wholesale partnerships have also expanded to roughly 70 buyers across 20 countries.
Demand for mid-priced brands has contracted amid polarized consumer spending, and fashion segment revenue has declined for several consecutive quarters. Consolidated revenue in 2025 also fell 3.8% year over year to 1,882.4 billion won.
Because profit improvement has relied more on cost reduction than on top-line growth, its sustainability warrants continued monitoring.
A significant portion of the 2025 profit improvement came from performance fees on Koramco Asset Trust's REIT asset sales and expanded dividend income. Profit from the real estate and finance segment can vary substantially from year to year depending on real estate market conditions and whether deals are completed.
Indeed, in 2023, consolidated operating profit plunged to 57.4 billion won amid a real estate market downturn and loan-loss provisions.
The Gasan-dong data center project vehicle posted a net loss of 27.8 billion won in 2025. Given a business structure in which a significant amount of time elapses between land acquisition and profit realization, the timing of investment payback and securing profitability remain future challenges. Expansion into new businesses could also act as a near-term financial burden.
High prices, weakened consumer sentiment, and seasonal variables such as unusually warm weather directly affect fashion sales. In 2025, the broader industry environment was difficult enough that major domestic fashion companies experienced a simultaneous downturn.
If the pace of consumption recovery is slower than expected, stagnation in fashion segment revenue could persist longer.
The debt ratio rose from 56.0% in 2022 to 63.9% in 2025, and as asset-based new businesses such as real estate and data centers expand, related financing burdens could also increase.
The sharp earnings decline experienced during the 2023 real estate downturn illustrates the double-edged nature of this diversification strategy. If payback on new business investments is delayed, financial pressure could intensify.
As value-oriented SPA brands and Korean beauty ODM manufacturers show notable growth, LF's competitive position—anchored in a portfolio of mid-to-premium priced brands—could face relative pressure.
Competitors including Samsung C&T Fashion, Handsome, Shinsegae International, and Kolon FnC are also strengthening their brands and expanding overseas, keeping competitive intensity on the rise.
Increased reliance on premium demand concentrated in department store channels could also heighten exposure to shifts in distribution channels.
Check the third-quarter 2026 earnings release to assess the degree of improvement against the weak year-earlier base, when third-quarter 2025 operating profit was only 16.1 billion won.
Monitor the completion and operational progress of the K-Square Data Center in Gasan-dong and its leasing status to gauge the timing of new business investment payback.
Check the 2026 full-year results and dividend disclosure to see whether non-recurring profit factors from Koramco Asset Trust and the real estate finance segment persisted, and whether the dividend policy was maintained.
Continuously track whether Koramco Asset Trust generates new REIT asset sales or performance fees to monitor changes in the weight of non-recurring factors within the overall profit structure.
Track whether the pace of ATHE's cosmetics sales expansion in Japan and Vietnam and the North American B2B growth of brands such as Hazzys continue.
LF has continued its profit recovery through 2024 and 2025 via cost efficiency and expanded profit contribution from the real estate finance segment, even as core fashion revenue remained stagnant.
Operating profit held in the 40 billion won range in both the first and second quarters of 2026, confirming earnings stability, and cumulative net income over the trailing four quarters has already surpassed the full-year 2025 figure.
That said, a significant portion of the profit improvement stemmed from non-recurring factors such as Koramco Asset Trust's REIT sale performance fees, and new businesses such as the Gasan-dong data center remain in a net loss position, factors that should be weighed together.
With competitive intensity rising from SPA brands and K-beauty amid polarized consumption, the pace of core fashion revenue recovery remains a key question.
Upcoming quarterly earnings releases, the timing of data center operations, and the sustainability of profit from the Koramco segment are likely to be key variables shaping the company's future earnings trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
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