[Edaily Reporter Kim Yoon-jung] Hana Securities assessed that #Shinsegae is expected to benefit from strong department store performance, reduced losses at duty-free shops, and an increase in foreign tourists.

On the 12th, Park Jong-dae, an analyst at Hana Securities, stated, “Department store performance is overwhelmingly strong,” adding, “2026 will be a year in which both earnings and valuations rise.”
Shinsegae Department Store’s total sales are projected to grow by 15% in the second quarter, following a 13% year-over-year increase in the first quarter. This represents a 7–10 percentage point higher growth rate compared to competitors on a like-for-like basis.
Researcher Park explained, “The base effect from the main store’s renovation is playing a significant role,” adding, “The main store underwent renovations from April to November of last year with 70% of the main building closed. As a result of the reopening, first-quarter sales are estimated to have grown by 55% year-over-year, and second-quarter sales by 70%.”
He further analyzed, “65–70% of sales to foreign customers come from luxury goods,” adding, “The fact that the company operates key stores in areas with high foreign foot traffic, such as Myeongdong and Busan, is also a factor behind the strong performance.”
He also assessed that uncertainty surrounding the duty-free business has significantly eased. “Operations at Incheon Airport DF2, which had been recording annual operating losses of over 50 billion won, were suspended in April,” he noted, forecasting that “operating profit from the duty-free business could increase by nearly 10 billion won compared to the first quarter.”
He also gave a positive assessment of the earnings recovery among affiliates. Analyst Park explained, “The fundamentals of affiliates such as Shinsegae International, Casamia, and Live Shopping are also improving,” adding, “Casamia has seen the addition of JAJU’s earnings, and furniture sales are also recovering.” Accordingly, he projected that consolidated operating profit for the second quarter would comfortably exceed market expectations of 137 billion won.
In the medium to long term, he predicted that the expansion of inbound foreign consumer spending would be the key driver for a revaluation of the company’s corporate value. Analyst Park analyzed, “From a valuation perspective, the rising share of inbound foreign sales will be the key argument,” adding, “Inbound foreign visitors are hitting record highs, and it is possible to reach over 30 million in the medium to long term.”
He explained, “Foreign consumer patterns are also shifting distinctly from a focus on package tours, duty-free shops, and cosmetics in 2015 to a focus on independent travel, department stores, and luxury goods after 2025,” noting, “When benchmarking against Japanese department stores, the foreign customer share has risen to 15%, and the P/E ratio has reached 18 times.”
He continued, “Unlike Japan, in Korea, department stores are absorbing luxury consumption, so the upper limit of the foreign visitor sales share could be even higher.” He assessed, “While the period from 2014 to 2024 saw the department store sector undergo a de-rating as retail channel dominance shifted from offline to online, the period starting in 2025 presents an opportunity for re-rating based on the inbound tourism economy.”
He added, “Shinsegae, which holds the strongest position in terms of luxury sales share and product lineup, is most likely to take the lead,” noting, “Shinsegae’s 12-month forward P/E ratio remains in the low 10x range, indicating ample room for share price appreciation.”