[Click eStock] "AU Brands Expanding Stores Domestically and Internationally"

On June 17, Korea Investment & Securities predicted that AU Brands would expand its business scale by increasing the number of stores.

AU Brands is a fashion company that acquired the rain boots brand from the UK’s “ZENNAR” and relaunched it under the name “Rockfish Weatherwear.” The company has expanded its product lineup to include Mary Jane shoes and sneakers (spring/fall), rain boots and slippers (summer), and winter shoes and cold-weather accessories (winter). Its main sales channels are online platforms such as Musinsa, 29CM, and its own website, while it also operates offline directly managed stores in Hannam, Seongsu, Dosan, and Myeongdong.

In the first quarter of this year, on a consolidated basis, AU Brands recorded sales of 7.8 billion KRW and operating profit of 800 million KRW. Compared to the same period last year, sales increased by 13.4%, while operating profit decreased by 24.2%.

Park Jungin, a researcher at Korea Investment & Securities, stated, “AU Brands typically sees increased sales during seasons with distinct seasonality,” and added, “The company has a concentrated plan to expand both domestic and overseas offline stores in the second half of this year.” He continued, “In December last year and April this year, the company opened new stores in Dosan and Myeongdong, respectively,” and added, “The Hannam-dong store, which is currently under renovation, will resume operations in July.”

He also stated, “The company is planning to open two to three additional stores in the second half of this year,” and analyzed, “It will also open stores in key overseas regions.” Furthermore, he said, “The company has secured a three-year business valued at 250 billion KRW in six Asian countries,” and projected, “This year, overseas sales of at least 10 billion KRW are possible.”