Shinsegae: June SSS +26%; 2Q to be better than street estimates

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Shinsegae: June SSS +26%; 2Q to be better than street estimates

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Shinsegae

June SSS +26%; 2Q to be better than

street estimates

Reiterate Rating: BUY | PO: 900,000 KRW | Price: 601,000 KRW

Shinsegae- June dept revenue +26%, 2Q +27% YoY 09 July 2026 Corrected

2Q June department store SSS (managerial accounting basis) grew 26% YoY, at a slightly Equity

better pace than Apr-May, considering 2 less peak operating days YoY. 2Q26 SSS grew

27% YoY, further improving from +21% in 1Q26, thanks to the continued strength in

Key Changesdomestic consumption and the inbound travelers’ spending. All categories delivered

healthy growth; luxury +36% YoY in June (41% YoY in 2Q), fashion grew 4%/10% (W) Previous Current

(June/2Q) YoY, home appliances +34%/+22% YoY (supported by the brands’ promotions 2026E EPS 45,611.81 46,708.47

in June), and grocery +12%/14% YoY. 2027E EPS 52,905.57 53,737.60

2028E EPS 60,520.75 61,592.29

2026E EBITDA (m) 1,168,597.2 1,182,513.8International inbound spend accelerating

Shinsegae’s main store/Gangnam/Busan stores are benefiting from the rising 2027E EBITDA (m) 1,278,882.2 1,288,568.0

international inbound travelers' spending, growing 159% YoY in Jun, contributing to 8.9% 2028E EBITDA (m) 1,369,784.5 1,381,719.1

of department store revenue. International inbound spending grew 149% YoY in 2Q26

and accounted for ~8.2% of total department store revenue and, vs 1Q26 trend of ~7% Ahyung Cho >>

Research Analyst

contribution and 90% YoY growth. Inbound tourism looks to be contributing ~25% of Merrill Lynch (Seoul)

Shinsegae’s growth. +82 2 3707 0527 ahyung.cho@bofa.com

Reit Buy on Shinsegae-Outperforming operations ZoeResearch(Jung-ae)AnalystChun >>

Shinsegae’s dept store operation is outperforming its peers.