Business · Companies · 2 hrs ago
Analyst expects higher profits at three South Korean department store groups
Daishin Securities expects profits to rise at three South Korean department store groups in the third quarter, even as sales growth slows.
The companies are Hyundai Department Store, Shinsegae and Lotte Shopping.
The analyst says sales growth has eased from the first half, partly because luxury brands have not raised prices and the won has strengthened.
Domestic fashion spending and foreign demand remain solid, according to the analyst.
Forecast operating profit is up 17% at Hyundai Department Store, 70% at Shinsegae and 33% at Lotte Shopping compared with a year earlier.
The firm cut all three target prices after recent valuation adjustments, while still seeing potential gains from the share prices cited in its analysis.
It says the coming fourth-quarter peak shopping season could renew investor interest, but the figures are forecasts rather than reported results.
Daishin Securities expects operating profit to rise year on year at Hyundai Department Store, Shinsegae and Lotte Shopping in the third quarter.
The brokerage says department store sales growth slowed from the first half, while domestic fashion spending and foreign demand remained firm.
It cut its target prices for all three groups, citing recent valuation adjustments.
Analyst Yoo Jeong-hyun said the sector’s stronger profit base was not fully reflected in company values.
- Who
- Daishin Securities analyst Yoo Jeong-hyun issued the forecasts for Hyundai Department Store, Shinsegae and Lotte Shopping.
- What
- The brokerage expects all three groups’ third-quarter operating profit to increase year on year, but lowered its target prices for them.
- When
- The report was dated October 15, 2026.
- Where
- South Korea.
- Why
- The brokerage expects profit to improve despite slower sales growth, while saying valuation adjustments prompted the target-price cuts.
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- Hyundai Department Store operating profit
- Expected to rise 17% to 84.8 billion won
- Shinsegae operating profit
- Expected to rise 70% to 170.4 billion won
- Lotte Shopping operating profit
- Expected to rise 33% to 173.9 billion won
- Hyundai Department Store target price
- Cut from 220,000 won to 170,000 won
- Shinsegae target price
- Cut from 1 million won to 720,000 won
- Lotte Shopping target price
- Cut from 200,000 won to 175,000 won
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What people are saying
Department store sales growth slowed as there were no luxury-goods price increases and the exchange rate fell, but domestic fashion spending and foreign demand remain solid.