[Special Stock] Shinsegae Rises 3% on Reopening Optimism

[Asia Economy Reporter Minji Lee] Shinsegae is showing a strong gain of over 3% fueled by reopening expectations.

At 2:43 PM on the 10th, Shinsegae was trading at 264,500 KRW, up 3.5% from the previous trading day. During the day, the stock price even rose to 266,000 KRW. Since Shinsegae operates businesses such as department stores and duty-free shops, which have high reopening expectations, the stock price is analyzed to reflect the outlook for improved earnings.

Last year's record-high performance in the fourth quarter was also positive. On a consolidated basis for Q4, Shinsegae recorded net sales and operating profit of 1.934 trillion KRW and 195.1 billion KRW respectively, exceeding market expectations. Annual operating profit increased by 486% year-on-year to 517.3 billion KRW, surpassing 500 billion KRW for the first time in history.

Younghoon Joo, a researcher at NH Investment & Securities, said, “The same-store sales growth rate for department stores increased by 13% year-on-year, and luxury goods grew by 41% year-on-year, driving growth. Additionally, the clothing category recorded double-digit sales growth due to increased outdoor activities. Among reopening-related companies, the earnings momentum is the strongest.”

This content was produced with the assistance of AI translation services.