[NH투자증권 영문버전 -이지영][Shinsegae] Businesses sailing smoothly in 4Q18
Analyst JY Lee / jy.lee@nhqv.com [Shinsegae] Businesses sailing smoothly in 4Q18 In 4Q18, Shinsegae is enjoying sound sales growth at its department stores, DFSs, and consolidated subsidiaries. In 2019, department store earnings should continue expanding, while DFSs are likely to benefit from recovering inbound Chinese tourist numbers and normalized earnings at new stores. We view the firm’s online integration efforts as being a positive in terms of customer expansion. ▶ Businesses sailing smoothly in 4Q18 In 4Q18, y-y same store sales growth (SSSG) at Shinsegae’s department stores stood at 8% in October and 0% in November. While it is still early to forecast sales for December, the early numbers appear sound—overseas luxury brands, high-end home appliances, and contemporary fashion products are all enjoying double-digit y-y sales growth. The DFS division enjoyed strong sales in both October and November. Compared with 3Q18, commission rates (paid to travel agencies