Eugene Investment & Securities analyzed on the 18th that Shinsegae International's performance will deteriorate due to poor sales during the peak season caused by high temperatures this year. Therefore, it maintained its investment opinion of 'buy' but lowered the target price by 25% to 18,000 won. The closing price on the previous transaction was 10,840 won.
Shinsegae International's sales flow declined in the peak season of October. Typically, this is a time when sales of fall/winter (FW) clothing, such as outerwear, are active, but it is interpreted that consumption did not occur as expected due to the absence of falling temperatures. Eugene Investment & Securities estimates Shinsegae International's revenue for the fourth quarter will be 381.8 billion won, a decrease of 2.7% compared to the previous year, and operating profit will be 13.7 billion won, a decrease of 2.3%.
Lee Hae-ni, a researcher at Eugene Investment & Securities, also noted the performance of the overseas fashion institutional sector. This researcher analyzed, "It seems that the termination of sales for some brands affected sales," while also stating, "Excluding the terminated brands, there was a flow of sales improvement centered on brands that show strength in winter."
This researcher expects performance improvement for Shinsegae International through new brands in 2025. According to this researcher, Shinsegae International prioritizes expanding into global markets in the future. The researcher projected, "Improvements in overseas performance for the cosmetic brand 'Amuse' and the clothing brand 'Harley Davidson' are expected," adding, "Overall profitability will improve thanks to advancements in the domestic fashion institutional sector."