[Click eStock] "Jeximix, Breaking Quarterly Sales Records Starting Q2"

[Asia Economy Reporter Ji Yeon-jin] Yuanta Securities expects Brand X Corporation's performance to significantly increase this year, anticipating the expansion of the beauty and men's lines of its athleisure brand Jeximix and strengthened market dominance.

An Joo-won, a researcher at Yuanta Securities, stated, "Brand X Corporation's sales and operating profit forecasts for this year are 254.8 billion KRW (+82.4% year-on-year) and 21.8 billion KRW (+167.5%), respectively," adding, "The high growth of Jeximix driven by category expansion such as beauty and men's lines will continue, and market dominance will be strengthened as Jeximix rises to the industry's number one position." He also expected that strong sales of sub-brands like Gelato Factory and Three Care would contribute to the upward revision of performance.

Brand X Corporation's first-quarter results showed sales of 38.6 billion KRW, a 50.4% increase year-on-year, while operating profit was 1.6 billion KRW, down 52.3%. Researcher An judged, "Although the company's overall profit decreased, considering the reduced demand for athleisure wear due to fitness center closures that lasted until early this year, the performance was relatively solid."

The increase in the company's sales was analyzed to be due to the consolidation of Gelato Lab's results, acquired in November last year, starting from the first quarter (2.3 billion KRW). Jeximix recorded sluggish sales of 15 billion KRW from January to February, but achieved a record monthly sales of 14 billion KRW in March due to the decline in domestic COVID-19 spread and increased demand for outdoor activities. It is expected to break the quarterly sales record starting from the second quarter this year. The expected sales for the second quarter were presented at 58.9 billion KRW, a 52.5% increase compared to the same period last year.

Operating profit is expected to decline due to poor performance of new brands and subsidiaries and expenses related to infrastructure establishment, but Gelato Lab's successful return to profitability in the first quarter is expected to reduce the company's overall deficit.

Gelato Lab is expected to see increased performance as the domestic self-nail market grows from 200 billion KRW last year to 300 billion KRW this year, and sales in the Japanese market also increase. Gelato Lab's sales this year are expected to increase by 65% year-on-year to 29.7 billion KRW, benefiting from the effect of launching new products at prices 15% cheaper than competitors through its own mall, which accounts for 84% of sales in the Japanese market.