Jeximix Surpasses Market Expectations for Q2 Operating Profit
Continued Growth Driven by Overseas Expansion in Second Half
Targets 100 Stores in China Next Year
Brand X Corporation, which operates the apparel brand 'Jeximix,' achieved results in the second quarter of this year that exceeded market expectations. Domestic operating profit more than doubled compared to the same period last year, leading to a rise in stock prices. Market experts expect rapid growth in scale once the results of the China expansion start to be reflected in the second half of this year.
According to the financial investment industry on the 12th, Brand X Corporation's stock price rose 64.5% in the second half of this year. Considering that the KOSDAQ index fell 9.0% during the same period, the return compared to the market reached 73.5 percentage points. Improved performance is driving the stock price increase. Market capitalization jumped to 335 billion KRW.
The athleisure brand Jeximix is expanding its product lineup beyond women's leggings to include golf, men's, and business casual wear. It is actively expanding overseas, mainly in Asia. Performance is rapidly improving due to strengthened product competitiveness, changes in consumer trends, and increased brand awareness.
Brand X Corporation recorded sales of 70.2 billion KRW and operating profit of 10.8 billion KRW in the second quarter. These figures represent increases of 27.1% and 129.3%, respectively, compared to the same period last year. Compared to the previous quarter, second-quarter sales and operating profit surged by 43.3% and 193.8%, respectively.
For the first half of the year, cumulative sales reached 119.2 billion KRW, and operating profit was 14.5 billion KRW. Breaking down the cumulative performance by clothing type for the first half of this year, sales of golf wear and men's apparel increased by 134% and 70%, respectively, compared to the same period last year.
Hyunjin Park, a researcher at Shinhan Investment Corp., explained, "The second-quarter operating profit significantly exceeded the market expectation of 7.9 billion KRW," adding, "Surprisingly, strong domestic performance led to this unexpected result." He also added, "We have identified that men's apparel performance continued to improve in July and August."
The second half of this year is expected to see performance improvements driven by overseas markets. Hyunjin Oh, a researcher at Kiwoom Securities, analyzed, "The female sports population is rapidly increasing in Asian markets such as Japan and China," and "The trend is shifting towards value-for-money consumption that pursues design satisfaction and comfort rather than focusing on large brands."
Hae-ni Lee, a researcher at Eugene Investment & Securities, explained, "China sales in the second quarter of this year recorded 2.2 billion KRW," adding, "This reflects recognition of some inventory from stores opened in China starting in July." He forecasted, "Sales are expected to increase as the number of stores in China expands in the second half of this year," and "The goal is to have 100 stores in China by next year."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
