[Click eStock] "Wingsfoot, Growth Expected Through Brand IP"

IBK Investment & Securities analyzed on the 30th that Wingsfoot is expected to grow through brand intellectual property (IP). No investment opinion or target price was provided.

In 2023, Wingsfoot recorded sales of 51.6 billion KRW and an operating profit of 3.97 billion KRW. Compared to the previous year, sales decreased by 4.9% while operating profit increased by 7.3%. Nam Seong-hyun, a researcher at IBK Investment & Securities, stated, "Last year, sales growth was limited due to the downturn in consumer spending," but added, "We analyze that profit growth was achieved through the expansion of high-margin IP brand sales, the launch effect of new brands such as Adno, and the maintenance of the scale of the main product Bearpaw."

Nam forecasted a high possibility of fundamental improvement this year. He emphasized, "The settling of the Adno brand is expected in the second half of this year, and the launch and contribution expansion of other IPs (Nautica, Pesula, Cultz) are anticipated," adding, "This is because they are seeking efficiency through rebranding of existing brands."

He said, "Since Wingsfoot successfully launched the Adno brand last year, it is expected to settle this year," and added, "Contribution expansion is likely as the same IP brand will be supplied through department store pop-up stores, home shopping, and large online channels."

Nam explained, "The reason 2024 is important is that it is the early stage of growing the scale through additional IP brands following Bearpaw," and stated, "Given the successful tests conducted last year, the possibility of fundamental improvement is high."