E-Mart is expected to report Q2 consolidated sales of 7.1 trillion won (US$4.67 billion) and operating profit of 75.3 billion won (US$49.7 million), based on FnGuide consensus on July 10.

However, estimates were recently cut after weaker results expected at Starbucks Korea.

Hanwha Investment & Securities said SCK Company’s Q2 sales likely fell 18% year on year to 653.7 billion won (US$431 million) and swung to a 13.1 billion won (US$8.65 million).

Operating loss after its 18 May “Tank Day” campaign, on the anniversary of the 1980 Gwangju uprising, triggered outrage and boycott calls.

E-Mart’s main offline business was stronger. First-half standalone sales rose 2.7% to 9.2 trillion won (US$6.04 billion), led by Traders and the retailer’s discount stores. Hanwha forecast standalone Q2 operating profit of 36.7 billion won (US$24.2 million).

Analysts also expected some benefit from Homeplus’s restructuring. The source said the Seoul Bankruptcy Court had dismissed Homeplus’s rehabilitation proceedings.

Hana Securities estimated that 59 Homeplus stores had closed since the end of the first half of last year, lifting sales at nearby E-Mart stores by 10%.

Online subsidiaries weighed on results. Gmarket, transferred to a joint venture with Alibaba Group, is recorded as an equity-method loss, while SSG.com continues to post losses.

🔗 Source: Chosun Daily

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