[Market Focus] Shinsegae Extends Rally on Strong Earnings...Up 6%

Clear Improvement in Department Store Earnings

The share price of Shinsegae, whose earnings improvement trend is clear, continues to rise.

As of 9:24 a.m. on the 10th, Shinsegae was trading at 379,000 won, up 6.76% from the previous trading day.

Shinsegae announced the previous day that, on a consolidated basis, it recorded sales of 692.95 billion won and operating profit of 480 billion won last year. These figures represent increases of 5.5% and 0.6%, respectively, compared with a year earlier.

Strong performance in the department store segment drove overall results. The department store business division posted 267.47 billion won last year, up 1% from 2024, marking a record high for the second consecutive year.

Securities firms are also giving positive evaluations. Samsung Securities raised its target price for Shinsegae from 330,000 won to 420,000 won in a report released that day.

Baek Jaeseung, an analyst at Samsung Securities, stated, "Despite higher depreciation expenses, the wealth effect driven by favorable financial markets, strong fashion sales thanks to favorable weather, and an increase in foreign customer sales led to robust department store revenue, which in turn supported company-wide profit growth."

He added, "Considering the low base in the first half of last year and the continuation of a favorable business environment, we expect at least the first half of this year to see a continued solid trend in department store sales."

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