"Gamseong Corporation Expects Rapid Growth for Snow Peak Apparel"

[Asia Economy Reporter Hyungsoo Park] Daishin Securities analyzed on the 17th that Gamseong Corporation has the most explosive growth potential among clothing brand companies.

Researcher Saerom Lee of Daishin Securities explained, "Snow Peak Apparel, launched in February last year, is establishing itself as an emerging outdoor company thanks to the premium camping gear brand."

It is estimated to achieve sales of 73 billion KRW and operating profit of 7.2 billion KRW on a consolidated basis next year. Sales are expected to increase by 72.2% compared to this year's forecast, and operating profit is expected to turn positive.

Researcher Lee emphasized, "Clothing sales are expected to reach 60.4 billion KRW, a 99.0% increase from the previous year," and "As of the end of this year, the total number of Snow Peak Apparel offline stores is planned to be 84."

He analyzed, "Considering the mid- to long-term expansion potential and efficiency improvement per store, it has explosive growth potential," and "Starting from the spring and summer seasons next year, adding a kids lineup and reducing offline store subsidies will enable performance improvement."

Additionally, he explained, "The sales commission rate will decrease from the high 20% range this year to the mid-20% range next year," and "the possibility of cost ratio improvement due to mass production is also a positive factor."