Lotte Shopping closed at 129,200 won on the 27th, up 2.62% from the previous session, marking a year-to-date gain exceeding 78% as the South Korean retailer enters a pronounced earnings recovery phase led by its department store division. The rebound stems from increased foreign visitor spending and strengthened fashion and beauty consumption. Analysts describe this as the company's first strong earnings turnaround since Lotte Group adopted a holding company structure in 2017, establishing its current retail business framework.
Lotte Shopping Stocks Gain 78% Year-to-Date
According to Yonhap Infomax current price data (screen number 3111), Lotte Shopping shares closed at 129,200 won on the 27th, rising 2.62% from the previous trading day. The stock's year-to-date advance exceeds 78%. While the shares experienced some pullback after sustained gains earlier this year, the department store segment continues to drive consolidated earnings growth, analysts noted. Ju Young-hoon, analyst at NH Investment & Securities, stated this represents "the first strong earnings rebound period since Lotte Group transitioned to a holding company structure in 2017 and reorganized into its current business framework."
![Lotte Shopping stock price trend since 2017]()
Lotte Shopping stock price trend since 2017 [Source: Yonhap Infomax]
Analysts Forecast Q2 Operating Profit Up 184%
Yonhap Infomax compiled Q2 earnings projections from six major domestic securities firms that issued reports within the past month. The consensus forecast places Lotte Shopping's Q2 consolidated revenue at 3.4647 trillion won and operating profit at 115.4 billion won, representing year-over-year increases of 3.43% and 184.32% respectively. The department store division remains the primary contributor to the quarter's performance.
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Lotte Shopping Q2 earnings forecast [Source: Yonhap Infomax, AI-generated image]
Foreign Sales Drive Department Store Revenue Growth
Foreign consumer spending growth serves as the core driver of department store segment improvement, according to securities firms. Samsung Securities analyzed that increased foreign sales lift the department store division's same-store sales growth rate by approximately 3 to 5 percentage points. Lotte Department Store achieved 640 billion won in foreign sales during the first half of the year, demonstrating sustained growth momentum. The company anticipates it may become the first domestic department store operator to reach 1 trillion won in foreign sales during the third quarter.
Hypermarket Losses Expected to Narrow in Q2
The hypermarket segment is projected to continue posting losses in Q2, though the deficit is expected to shrink year-over-year as the division absorbs customer traffic departing from Homeplus. While the upcoming launch of the Ocado logistics center may introduce cost pressures, analysts forecast that hypermarket cost efficiency improvements will offset these expenses. The speed at which the center's operational benefits materialize in earnings will serve as a key variable from the second half onward.
Analysts Project Continued Growth Through H2
Securities firms forecast the department store division's strength will persist into the second half. Same-store sales growth is likely to continue as both domestic consumption strength and foreign sales increases proceed simultaneously. Lee Jin-hyup, analyst at Hanwha Investment & Securities, stated, "The strength in domestic demand and foreign sales is structurally increasing," adding, "Even with a conservative outlook, the current trend is highly likely to continue through next year."
FAQ
What drove Lotte Shopping's stock price increase on the 27th?
Lotte Shopping shares rose 2.62% to close at 129,200 won on the 27th, driven by strong earnings recovery in its department store division. The rebound stems from increased foreign visitor spending and strengthened fashion and beauty consumption, with year-to-date gains exceeding 78%.
How much did analysts forecast for Lotte Shopping's Q2 operating profit?
Six major domestic securities firms project Lotte Shopping's Q2 consolidated operating profit at 115.4 billion won, representing a 184.32% year-over-year increase. Consensus revenue forecast stands at 3.4647 trillion won, up 3.43% from the same period last year.
What role do foreign sales play in Lotte Department Store's performance?
Foreign sales serve as the core driver of department store segment improvement. Samsung Securities analyzed that increased foreign sales lift same-store sales growth by approximately 3 to 5 percentage points. Lotte Department Store achieved 640 billion won in foreign sales during the first half of the year.
