E-Mart, 29billion won3 sales forecast adjustment? Starbucks factor

The market is paying close attention to whether E-Mart will keep this year’s consolidated sales forecast of 29 trillion won and 3 billion won. The reason is the emergence of unexpected variables such as the recent ‘Starbucks incident’.

E-Mart announced last 2 month that this year’s consolidated sales would be 29 trillion won and 3 billion won. Whether that figure will be maintained depending on this year’s earnings trend is the key issue.

This year’s 1quarter consolidated sales were 7 trillion won and 1,234 won, down 1.3% from the same period a year earlier. Sales momentum over the same period slipped slightly.

1Quarterly operating profit was 1,783billion won, up 11.9% from a year earlier. The improvement in operating profit is a meaningful result on a quarterly basis.

This level of operating profit is 2012years after 14years, 1the company’s highest quarterly performance. The company posted an unusually large profit in that quarter.

However, the industry views the so-called “Starbucks incident” as a negative for E-Mart. There is speculation that the company’s annual guidance could change depending on how the matter develops.

Whether the company actually revises its sales outlook will need to be confirmed in future disclosures. Investors should look at related disclosures and next quarter’s earnings release to see whether any changes are made.