Koton Achieved a Net Profit of 333 Million TL in the Second Half of 2025
Koton demonstrated a strong financial performance in the second quarter of 2025 as a result of its wide product range, dynamic pricing policy, and strategic breakthroughs in inventory, supply, and cost management.
The Company’s gross profit margin increased by 22 points compared to the first quarter of the year and by 4 points compared to the same quarter of the previous year, reaching 65%, thanks to cost increases below inflation and effective inventory management, especially in the Spring and Summer 2025 season. During the same period, EBITDA margin increased by 5 percentage points compared to the same period last year, reaching 37%, driven by increased gross margins and controlled expense management. EBITDA also increased by over 4% year-over-year, exceeding TL 2.6 billion.
Despite the ongoing stagnant market conditions, Koton achieved an operating profit of 1.1 billion TL thanks to its dynamic pricing strategy, effective inventory management, and controlled expense management. Despite the increasing financing costs brought about by the high interest rate environment, the company achieved a net profit of 333 million TL, supported by the exchange rate difference income from its international operations. With the improvement in cash flow from operations, free cash flow turned positive after three quarters, and the company generated 636 million TL in cash.
Domestic Merchandising Continues to Be Koton’s Flagship
Domestic retail sales, which grew by over 7% in the first half of the year compared to the same period last year, provided significant support to domestic sales, which grew by 3%. While the number of stores remained unchanged in the country, domestic square meter productivity increased by 27% in US dollar terms in the first half of the year due to the optimization work carried out in the stores. The gross profit margin in the domestic retail channel increased by 6 percentage points to 73% in the second quarter compared to the second quarter of last year. The international e-commerce channel saw sales double that of the same period last year in the first half of the year.
The number of stores increased to 456
The number of stores, which was 449 at the end of the first quarter, reached 453 at the end of the second quarter with the opening of 4 stores abroad. With the new stores opened in July and the first half of August, the current number has increased to 456. Store openings are expected to continue at an accelerated pace in the second half of the year, with nearly 10 more planned to open, primarily abroad and particularly in the Gulf Cooperation Council (GCC) region.
“We Performed Above the Industry Average”
Koton CEO Dr. A. Bülent Sabuncu made the following assessments regarding the company’s second quarter performance: “As we leave behind the first half of 2025, which was dominated by challenging macroeconomic conditions and shrinking consumer demand compared to the previous year, I would like to point out that we performed above industry averages with our strong financial results in the second quarter, thanks to the steps we took in line with our strategic priorities. This quarter, we began to see the results of our dynamic pricing strategy, effective inventory and supply management, and controlled cost management. We increased both our gross profit margin and our EBITDA margin. Despite increasing financing costs, we achieved a net profit of 333 million TL and shifted our free cash flow to positive status after three quarters, generating 636 million TL in cash.
The strong results we achieved in the second quarter of the year reinforced our confidence in achieving our 2025 targets. While we started the third quarter strongly domestically, we anticipate that our international operations will also contribute positively to consolidated results, given that the Turkish Lira’s real appreciation in the second half of the year was limited compared to last year.”
