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Kiwoom Securities Cuts Lotte Shopping Target Price to 190,000 KRW on Q3 Outlook
Retail Trade · Department Stores · yonhap_finance · 2026-09-07
023530
Kiwoom Securities lowered its target price for Lotte Shopping by 9.5% due to a projected slowdown in department store sales, while maintaining a Buy rating.
What Happened
Target Price Adjustment: Kiwoom Securities has revised its target price for Lotte Shopping downward by 9.5%, from 210,000 KRW to 190,000 KRW, citing a potential slowdown in third-quarter earnings. Despite the adjustment, the firm maintained a 'Buy' rating, reflecting confidence in the company's long-term prospects.
Segment Performance: The department store division is expected to miss its 12% growth target due to reduced asset effects from stock market volatility and a post-promotional sales dip. Conversely, the discount store division is performing well, with sales growth significantly exceeding initial projections, helping to offset the weakness in the department store sector.
Earnings Outlook: The firm estimates a third-quarter consolidated operating profit of 170.5 billion KRW, a 31% increase year-over-year. Analysts emphasized that performance in November and beyond will be critical, noting that year-end bonuses could drive a rebound in consumer spending at department stores.
Market Context: Strong growth in foreign tourist spending and a recent rebound in the domestic stock market provide a supportive backdrop for the company. However, the sustainability of the current high growth rate in discount stores remains a key factor to monitor in the coming quarters.