Korea Investment & Securities maintained its "buy" opinion on Shinsegae International on the 20th and offered 250,000 won, down 11% from the previous year.
This is due to a downward revision of operating profit estimates for this year and next year.
The company's third-quarter sales are expected to increase 7% and 155% year-on-year to 356 billion won and 18 billion won in operating profit.
Operating profit is expected to meet lower forecasts. Overseas fashion and imported cosmetics will perform well, but domestic fashion and VIDIVICI are expected to remain sluggish.
South Korean fashion is expected to post an operating loss of KRW 3 billion due to a drop in DAYS supplies heading for E-Mart due to the sluggish women's clothing market.
Although lifestyle sales will increase 8% year-on-year, they are expected to post an operating loss of KRW 1 billion due to one-off recovery costs stemming from the closure of stores.
Cosmetic sales are expected to increase only 3% compared to a year ago. Imported cosmetics are expected to increase by 44% and their own brand sales are expected to decrease by 43%.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
