E-Mart shares fall as Starbucks Korea losses weigh on results

E-Mart shares fell 8.05% on Nov.

11 after the South Korean retailer released third-quarter results.

The company’s main retail operations performed well, with standalone sales up 11.1% and operating profit up 46.3% from a year earlier.

But group operating profit fell 69.6% to 46.1 billion won as several subsidiaries reported losses.

Starbucks Korea’s operator, SCK Company, saw sales fall 16.2% and shifted from a 60 billion won profit to a 45.3 billion won loss.

Changes to promotions and a pause in its e-frequency program affected Starbucks Korea’s sales and earnings, the company said.

Analysts cut their E-Mart price targets, citing weak subsidiary results and uncertainty about a recovery.

Investors will watch whether renewed marketing events in the fourth quarter help Starbucks Korea recover.