Shinsegae’s earnings in the fourth quarter last year were slow, said Hyundai Motor Investment and Securities on Feb. 18 lowering the target price to 320,000 won (US$284.57) from 330,000 won.
Its revenue in the period increased 20.3 percent on-year to 2.51 trillion won but operating profit fell 12.2 percent to 133.8 billion won, below market expectations,.
The poor performance of its subsidiaries Shinsegae DF, Central City and Casamia have dented its profits. The duty-free operator, in particular, had to finance two new branches that led to 5.3 billion won operating loss, said analyst Park Jong-ryeol.
Despite solid growth in department store business, he lowered the annual operating profit estimate for 2019 by 7.5 percent, reflecting the slow Q4 earnings and heightening competition in duty-free business.
By Hwang You-mee (firstname.lastname@example.org)