F&F, MLB Are Great, Discovery Too... "Growth Expected Again This Year ↑"

[Asia Economy Reporter Hyunseok Yoo] F&F is expected to achieve strong performance this year due to the growth of its clothing brands MLB and Discovery.

On the 17th, according to Hyundai Motor Securities, F&F is projected to record sales of 1.17 trillion KRW and an operating profit of 198 billion KRW this year, representing increases of 39.62% and 60.98% respectively compared to the previous year.

The factors driving the improved performance are MLB and Discovery. Hyejin Jung, a researcher at Hyundai Motor Securities, stated, "In the first quarter, MLB duty-free and non-duty-free sales, MLB China, and domestic Discovery all grew compared to the same period last year, recording results that exceed the heightened market consensus. We expect MLB China's first-quarter sales to reach 38.6 billion KRW, a 513% increase year-on-year."

As a result, Hyundai Motor Securities forecasts that F&F's first-quarter sales and operating profit will be 236.3 billion KRW and 34.9 billion KRW respectively, marking increases of 42.4% and 101.7% compared to the same period last year. Jung explained, "With domestic consumer sentiment improving and clothing demand significantly recovering, Discovery's strong sales momentum is continuing. MLB duty-free sales and MLB China are also expected to maintain growth, reaffirming solid demand toward China."

Researcher Jung emphasized that the growth of the MLB brand in China is a key investment point. He said, "In China, where consumer growth was strongest in 2021, sales growth exceeding market expansion is expected. A growth point is store openings; as of the end of the fourth quarter last year, there were about 70 dealerships, which are expected to expand to around 250 by the end of this year. If growth continues, store openings could further increase." He added, "MLB China's top-line is expected to reach 277 billion KRW this year, and MLB Hong Kong has also turned profitable since the fourth quarter last year and is continuing its recovery trend, so both top-line and profitability toward China are expected to improve this year."

This content was produced with the assistance of AI translation services.