Brand X Corp. posts major sales jump amid leggings boom

Brand X Corp., a company behind fitness wear brand Xexymix, reported a whopping 113 percent on-year increase in sales last year, thanks to the popularity of leggings during the coronavirus pandemic.

The social commerce startup posted a revenue of 139.8 billion won ($126.8 million) in 2020, while racking up 8.4 billion won in operating profit and 7.2 billion won in net profit, the company said in a tentative earnings report released on Monday. The firm’s full-year sales marked a two-fold increase over the last three years.

The upward trend was carried largely by one of its brands Xexymix, known for athletic wear including leggings, which raked up 109.4 billion won in sales and 10.8 billion won in operating profit last year.

The jump in sales comes as leggings enjoyed a bump in popularity last year.

Sales of the tight-fitting stretch pants rose by 2.6 percent on-year to 762 billion won in sales, according to Euromonitor International Korea, becoming the only fashion item in the country to enjoyed sales growth in 2020.

“Xexymix accounts for some 78 percent of Brand X’s sales. As the legging boom arrived globally and at-home fitness caught on, the brand buoyed the company’s sales,” one official told The Korea Herald.

Despite the sluggish sales in the fashion industry caused by weak consumer confidence as a result of the pandemic, Brand X was able to improve profitability by “taking a direct-to-consumer approach and releasing new items at a faster pace,” the official added.

Xexymix, for example, generates 90 percent of its sales from its own shopping platform and was able to enjoy a major growth against the backdrop of COVID-19 and the trend of contactless shopping, the official explained.

Xexymix listed its shares on the country’s second-tier stock market KOSDAQ last year. Brand X is preparing for an initial public offering of two more companies -- gel nail brands Gelato Lab and home meal replacement brand Three Care Korea -- on the bourse this year.

By Yim Hyun-su (hyunsu@heraldcorp.com)