Shinsegae is forecast to deliver strong Q2 2026 performance with operating profit surging over 100% year-on-year, according to estimates from 9 major Korean securities firms compiled by Yonhap Infomax on the 20th. The growth is driven by record foreign customer sales, won weakness boosting purchasing power, and domestic consumption recovery. The department store segment led the performance improvement, with foreign sales in H1 reaching a record 580 billion won.
Shinsegae Q2 2026 Financial Forecast Shows 103% Operating Profit Growth
Yonhap Infomax compiled Q2 2026 performance forecasts from 9 major Korean securities firms published within the past month on the 20th. Shinsegae is expected to post consolidated revenue of 1.7859 trillion won and operating profit of 153.2 billion won in Q2 2026. Revenue and operating profit represent increases of 5.44% and 103.57% respectively compared to the same period last year.
Shinsegae's Q1 2026 consolidated business segments included department stores, fashion and cosmetics, furniture retail and lifestyle, other mail order sales (Shinsegae Live Shopping), real estate and automobile passenger terminal business, hotel business, and duty-free business. Revenue proportions were 39.9%, 16.7%, 6.0%, 4.9%, 3.7%, 1.9%, and 31.9% respectively. Department stores, fashion and cosmetics, and duty-free business accounted for large revenue shares.
Department Store Segment Records 580 Billion Won Foreign Sales in H1
The department store segment drove Q2 performance growth, benefiting from continued domestic consumption recovery and high foreign customer sales growth into Q2. Lotte, Shinsegae, and Hyundai - Korea's three major department stores - recently announced that H1 foreign sales achieved record-high levels.
Shinsegae Department Store recorded 580 billion won in foreign sales during H1, the highest ever. The company is forecast to achieve 1 trillion won in annual foreign sales for the first time. Won weakness enhanced foreign purchasing power. The dollar-won exchange rate reached 1,561.5 won intraday during Q2, maintaining elevated levels. Foreign visitors to Korea increased based on K-culture popularity.
Shinsegae completed headquarters renewal last year, positioning the company to benefit more significantly from foreign consumption expansion and luxury demand recovery compared to competitors.
Subsidiary Performance Supports Q2 Improvement
Major subsidiary performance supported Shinsegae's Q2 improvement. Shinsegae International and Shinsegae Live Shopping are expected to show earnings rebounds following strong sales in high-margin apparel categories.
Duty-free business Q2 operating profit is estimated at approximately 19.2 billion won. Oh Lin-ah, LS Securities analyst, stated that duty-free business Q2 daily average sales are expected at the high 8 billion won range, noting that while DF2 operation termination somewhat slowed revenue growth, profitability improved through business structure reorganization centered on downtown stores.
Duty-Free Business Restructuring Improves Profitability After DF2 Exit
Shinsegae DF, responsible for duty-free operations, withdrew from Incheon Airport Terminal 2 DF2 (liquor and tobacco) zone in April, reducing rental cost burden. Shinsegae's Q2 revenue growth rate appears somewhat lower due to terminating Incheon Airport duty-free DF2 zone operations.
Ju Young-hoon, NH Investment & Securities analyst, analyzed that the Incheon Airport DF2 zone accounted for most duty-free operation losses, stating that in terms of operating profit, the exit actually constitutes a rebound factor.
On the 16th, Shinsegae's stock price closed at 589,000 won, down 3.44% from the previous day.
FAQ
What is Shinsegae's Q2 2026 operating profit forecast?
Shinsegae is forecast to post operating profit of 153.2 billion won in Q2 2026, representing a 103.57% increase compared to the same period last year, according to estimates from 9 major Korean securities firms compiled by Yonhap Infomax on the 20th.
Why did Shinsegae withdraw from Incheon Airport DF2 duty-free zone?
Shinsegae DF withdrew from Incheon Airport Terminal 2 DF2 zone in April to reduce rental cost burden. The DF2 zone accounted for most duty-free operation losses, and the exit improved profitability through business structure reorganization centered on downtown stores.
