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IBK Securities Cuts E-mart Q3 Profit Forecast Amid Starbucks Slump
Retail Trade · Specialty Stores · yonhap_finance · 2026-09-09
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IBK Securities has lowered its Q3 operating profit forecast for E-mart, citing persistent profitability issues at its subsidiary, SCK Company.
What Happened
Profit Forecast Downgrade: IBK Securities has revised down E-mart's Q3 operating profit projection from 174.5 billion KRW to 128.5 billion KRW. The adjustment reflects the deeper-than-expected earnings slump at its subsidiary, SCK Company, which operates Starbucks in Korea.
Starbucks Performance Issues: SCK Company is expected to report an operating loss of 24.2 billion KRW for the third quarter, a sharp reversal from the 60 billion KRW profit recorded in the same period last year. Declining foot traffic at Starbucks stores remains a significant drag on E-mart's overall financial performance.
Core Business Resilience: Despite the subsidiary's struggles, E-mart's core discount store business is showing signs of strength with expected same-store sales growth exceeding 5%. Additionally, losses at SSG.com are projected to narrow, providing some relief to the company's bottom line.
Investment Outlook: The brokerage firm maintained its 'Buy' rating and 100,000 KRW target price for E-mart. Analysts suggest that the future recovery trajectory of SCK Company will be the critical variable for E-mart's stock performance moving forward.