[Click eStock] "Sales Growth Amid Golf Market Boom"… Golfwear No.1 Chris F&C Highlights Improvement in Bugaek

[Asia Economy Reporter Ji Yeon-jin] Hana Financial Investment announced on the 5th that Chris F&C is expected to see sales growth and profitability improvement due to the booming golf market.

Chris F&C is a golf wear specialized brand company and ranked first in domestic golf wear sales as of last year. The sales proportion by brand is Paris Gates (33%), Ping (29%), Phantom (24%), Master Bunny (9%), and Saint Andrews (5%).

Jeong Min-gu, a researcher at Hana Financial Investment, said, "With the full-scale golf peak season in the second half of this year, strong performance is expected in the second quarter. The company is expected to achieve external growth and profitability improvement by building a brand portfolio targeting various age groups and strengthening online sales channels." He added, "Although there was an issue with the sale of the major shareholder (Chris F&C Invest), recently the overhang volume has been resolved, so related risks are expected to gradually decrease."

Chris F&C is expanding its own design and planning products through license agreements with overseas brand companies, and continues to release new products covering mid- to high-end ranges. In the second quarter, growth is expected in premium brands (Saint Andrews, Master Bunny) targeting new golfers in their 20s and 30s.

In the case of Saint Andrews, the price range for short-sleeve T-shirts is 200,000 to 400,000 KRW, with a higher profit margin compared to other brands. The sales of Saint Andrews and Master Bunny brands in the second quarter are expected to increase by 64.2% and 132.1% year-on-year, reaching 10.5 billion KRW and 5.7 billion KRW, respectively.

This year, Chris F&C's performance is expected to see sales increase by 17.3% year-on-year to 343.1 billion KRW, and operating profit is expected to rise by 24.3% to 61.9 billion KRW. The number of offline stores is also expected to expand this year, increasing from 602 at the end of last year to 623 in the first half of this year. It is estimated to reach 640 by the end of this year.

Researcher Jeong said, "Although the ratio of selling and administrative expenses is expected to increase compared to last year due to increased sales commissions from store expansion, profitability improvement from sales growth is expected to continue. Chris F&C is expected to see balanced sales growth in mid-priced products as well by increasing advertising expenses for the mid-priced brand Ping along with strong sales of premium products. Since new brand product launches are expected next year, mid- to long-term growth is anticipated," he said.