[Click e-Stock] "Zinus Growing Despite Tariff Concerns"

On May 12, KB Securities analyzed that Zinus is continuing to grow despite concerns over tariffs.

In the first quarter, Zinus recorded sales of 249.9 billion KRW and an operating profit of 27.5 billion KRW. Compared to the same period last year, sales increased by 64.2%, and the company turned to an operating profit.

Kim Hyungyeom, a researcher at KB Securities, stated, "Mattress sales reached 199.9 billion KRW, up 104.0% year-on-year," and explained, "The growth was driven by balanced expansion at major sales channels such as Amazon and Walmart, as well as the growth of original equipment manufacturing (OEM) sales that began in the second half of last year."

He continued, "A reversal of provisions amounting to 16.7 billion KRW, resulting from winning the anti-dumping lawsuit, was reflected in operating profit, resulting in an operating margin of 11.0%. Excluding the reversal amount, the operating margin was 4.3%," he added.

Kim also analyzed, "The tariff issue could actually serve as a positive factor that highlights Zinus's differentiated competitiveness. Recently, there was a case where Chinese mattresses were falsely labeled as 'Made in Korea' and exported to the United States, but were caught by the Korea Customs Service. This suggests that major Chinese competitors are now facing difficulties exporting to the U.S. market." He further emphasized, "It has already been confirmed that Zinus's mattress sales in the first quarter increased sharply, and the recently launched small box product is expected to accelerate this growth trend."

Kim predicted, "The number of countries outside the United States with sales exceeding 10 billion KRW has increased from six to more than ten. This will improve the previously risky sales structure that was overly dependent on certain regions and establish a stable foundation for growth."