[Click e-Stock] "Gamsung Corporation Achieves Both Earnings Growth and Shareholder Returns"

On May 21, Korea Investment & Securities analyzed that Gamsung Corporation is attracting market attention by achieving both earnings growth and enhanced shareholder returns.

Gamsung Corporation began its casual outdoor brand business in 2019 through a licensing agreement with Snowpeak Inc. of Japan. Snowpeak has continued to grow steadily, leveraging its strong brand recognition, product quality, and a loyal customer base.

Currently, Gamsung Corporation operates 186 offline stores in South Korea, including department stores, outlets, and agencies, and also has six online sales channels including its own online mall. Yoon Cheolhwan, a researcher at Korea Investment & Securities, commented, "Despite the economic slowdown, the company continues to expand its business based on brand recognition, high product quality, and customer loyalty."

The company's first-quarter results this year exceeded market expectations. Sales reached KRW 46.7 billion, up 25.5% year-on-year, while operating profit rose 48.2% to KRW 6.8 billion. These results are particularly noteworthy given that the overall outdoor apparel market was sluggish due to weakened domestic consumer sentiment.

Researcher Yoon explained, "The company increased the number of offline stores based on brand recognition, and collaboration products with globally popular IPs such as Hello Kitty received positive responses, resulting in higher sales per existing store. Despite the traditional off-season, business expansion led to improved cost ratios, which in turn raised the operating margin to 14.7%, up 2.3 percentage points from the same period last year."

The outlook for annual performance this year is also positive. Gamsung Corporation's annual sales are expected to reach KRW 264.7 billion (up 20.1% year-on-year), with operating profit projected at KRW 46 billion (up 27.7% year-on-year), and the operating margin is forecast to reach 17.4%.

Researcher Yoon Cheolhwan stated, "Despite concerns over economic slowdown, the number of offline stores is expected to increase from 184 at the end of last year to 192, and as a result, the domestic apparel business is expected to continue its growth trend." He added, "With the number of stores increasing in Taiwan, Japan, and China, a concrete roadmap for global expansion is expected to be presented within the year."

The shareholder return policy will also be strengthened. Gamsung Corporation plans to return at least 50% of its net profit from the previous business year to shareholders between 2025 and 2027. Last month, the company decided to immediately retire KRW 7.3 billion worth of treasury shares (1.93 million shares) after acquiring them, continuing its shareholder-friendly approach.

Researcher Yoon said, "As the shareholder return for 2025 is expected to be KRW 15 billion, the remaining amount is also expected to have a positive impact on enhancing corporate value throughout the year."