KOSPIApparel & Living031430

Shinsegae International

₩10,490▼ 1.04%2026-10-02 close

Market Cap

₩365.6B

Turnover

₩1.3B

Volume

120,000 shares

Shares out.

35M

PER

17.4×

PBR

0.4×

EPS

₩597

Dividend Yield

3.84%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close

Report overview

Fashion-Beauty Swings to Profit, Subsidiary Risks Remain

Shinsegae International swung to a consolidated operating profit in the first half of 2026, but weak performance at core subsidiaries Shinsegae Tomboy and Amuse Korea continues to weigh on the group.

1
Q2 2026 consolidated revenue reached KRW 291.6 billion with operating profit of KRW 7.0 billion, turning positive from an operating loss a year earlier.
2
Cosmetics segment revenue hit a record quarterly high, while imported fashion and imported cosmetics both posted double-digit growth.
3
By contrast, core subsidiaries Shinsegae Tomboy and Amuse Korea each posted operating losses in Q2 2026, moving in the opposite direction from the parent.
4
Full-year 2025 results showed an operating loss, partly reflecting a smaller revenue base following a portfolio restructuring.
5
The company is pursuing a value-up plan targeting an average shareholder return ratio of over 30% for 2025-2027, including cancellation of 3% of treasury shares.

Business structure

Shinsegae International operates on two main pillars: domestic distribution of imported fashion and luxury brands, and planning and sale of its own cosmetics brands.

The fashion segment centers on distribution rights for imported luxury and contemporary brands, complemented by in-house brands such as Studio Tomboy and Bori operated through consolidated subsidiary Shinsegae Tomboy.

The cosmetics segment combines proprietary brands such as Vidivici, Yunjak, Swiss Perfection and Poiret with distribution of niche imported perfume and cosmetics brands like Diptyque and Byredo, and also consolidates vegan beauty brand Amuse Korea, acquired in 2024.

The lifestyle brand JAJU was previously part of the group, but a recent portfolio restructuring changed how continuing-operations results are reported.

Distribution runs mainly through Shinsegae department stores, along with the company's own online malls SSF Shop and Shinsegae V, and duty-free channels, closely tying its performance to the growth of affiliated department stores.

The company also maintains overseas production and sales bases, including a China subsidiary and a joint venture with Italy's Intercos, Shinsegae Intercos Korea.

Competition comes from large beauty players such as Amorepacific and LG Household & Health Care in cosmetics, and from online platforms such as Musinsa as well as direct entry by overseas brands in fashion.

Global expansion of proprietary brands such as Yunjak and Vidivici into China, Japan and Southeast Asia has recently been positioned as a core growth strategy. Shinsegae Tomboy has been rebranding its domestic labels while also opening a standalone store in Singapore in July to pursue Southeast Asian markets.

Earnings trend

Quarterly revenue · Operating profit

₩308.6B-₩2.3B25Q2₩310.4B-₩2B25Q3₩186.7B-₩11.8B25Q4₩295.6B₩14.8B26Q1₩291.6B₩7B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩1.6T₩115.3B2022₩1.4T₩48.7B2023₩1.3T₩26.8B2024₩1.1T-₩11.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩308.6B	-₩2.3B	−0.7%
2025Q3	₩310.4B	-₩2B	−0.7%
2025Q4	₩186.7B	-₩11.8B	−6.3%
2026Q1	₩295.6B	₩14.8B	5.0%
2026Q2	₩291.6B	₩7B	2.4%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩1.6T	₩115.3B	₩118.3B	7.4%	14.2%	53.4%
2023	₩1.4T	₩48.7B	₩39.2B	3.6%	4.6%	55.5%
2024	₩1.3T	₩26.8B	₩32.5B	2.1%	3.9%	57.5%
2025	₩1.1T	-₩11.5B	₩4.1B	−1.0%	0.5%	70.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22

Earnings analysis

On an annual basis, revenue fell from KRW 1,553.9 billion with operating profit of KRW 115.3 billion (7.4% margin) in 2022, to KRW 1,354.3 billion and KRW 48.7 billion (3.6%) in 2023, and further to KRW 1,308.6 billion and KRW 26.8 billion (2.1%) in 2024, showing a persistent margin decline.

In 2025, revenue dropped to KRW 1,110.0 billion and the operating line turned negative at KRW -11.5 billion (-1.0% margin), though net profit remained slightly positive at KRW 4.1 billion, suggesting non-operating items influenced the bottom line.

Quarterly, losses persisted through Q2 2025 (revenue KRW 308.6 billion, operating loss KRW 2.3 billion) and Q3 2025 (revenue KRW 310.4 billion, operating loss KRW 2.0 billion), while Q4 2025 revenue fell sharply to KRW 186.7 billion, a change that appears linked to a portfolio restructuring.

The company then rebounded clearly in Q1 2026 with revenue of KRW 295.6 billion, operating profit of KRW 14.8 billion and net profit of KRW 14.2 billion, and sustained the profitable trend in Q2 2026 with revenue of KRW 291.6 billion, operating profit of KRW 7.0 billion and net profit of KRW 6.8 billion.

Combined net profit attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) stood at roughly KRW 20.5 billion, as first-half 2026 profits largely offset the losses booked in Q3 and Q4 2025.

However, Q2 operating profit of KRW 7.0 billion was lower than Q1's KRW 14.8 billion, reflecting the seasonally slower period for fashion and beauty demand.

Behind this improvement was a record quarterly cosmetics revenue and double-digit growth in imported fashion and imported cosmetics, while Shinsegae Tomboy and Amuse Korea each saw revenue and earnings decline, highlighting a divergence within the consolidated results.

Industry analysis

Domestic premium consumption is seen as being in a gradual recovery phase centered on department store channels, supported by an increase in foreign tourist inflows and a recovery in luxury and living-category demand.

Shinsegae International is heavily dependent on the Shinsegae department store network, so its business trends closely track luxury and fashion sales growth at those stores.

However, a growing number of cases in which overseas brands build a domestic sales base and then switch to direct operation point to a structural risk for the distribution-rights-dependent import brand business.

In cosmetics, dependence of proprietary brands on China sales has historically been a key swing factor, with performance volatility tied to trends such as "guochao" nationalist consumption and China's broader consumption cycle.

More recently, in-house brands such as Yunjak and Amuse have been expanding distribution beyond China, Japan and the United States into new markets including India, the Middle East and Europe in an effort to reduce regional concentration.

Compared with large beauty players such as Amorepacific and LG Household & Health Care, the company's revenue scale is smaller, but it holds a differentiated portfolio combining niche perfume distribution with proprietary cosmetics brands.

In fashion, channel competition between online curated platforms such as Musinsa and offline department stores continues, leaving domestic sales recovery through in-house brand rebranding as an ongoing task.

Outlook

The company has disclosed a value-up plan spanning fiscal years 2025-2027 that targets an average shareholder return ratio of over 30% and cancellation of 3% of treasury shares, while setting a portion of standalone operating profit as the funding base for shareholder returns to improve dividend predictability.

On the business side, management has outlined a medium-to-long-term direction of reaching KRW 2 trillion in consolidated revenue by 2030 through global expansion and brand mergers and acquisitions.

In cosmetics, Yunjak plans to first expand distribution in China and Japan before entering new markets such as India, the Middle East and Europe, while Amuse is also pursuing a higher share of overseas sales through online and offline channels both domestically and abroad.

The Korea Investors Service Research Center forecast in an April report that Shinsegae International would post consolidated revenue of KRW 1,228.1 billion and operating profit of KRW 46.9 billion in 2026, turning positive from the prior year's operating loss.

In fashion, Shinsegae Tomboy is pursuing both domestic sales recovery and Southeast Asian market entry through a two-track strategy centered on Studio Tomboy and Bori.

However, how much these plans translate into results will depend on how quickly the subsidiaries' profitability recovers and how overseas demand, including in China, evolves.

Valuation

PER

17.4×

PBR

0.4×

ROE

2.5%

EPS

₩597

BPS

₩25,185

Dividend per share

₩400

Shinsegae International has recently traded at a level below its net asset value, which can be read as reflecting market caution ahead of a full-fledged earnings recovery.

In periods of strong past earnings the stock traded at relatively lower multiples, but as profits shrank and turned into losses between 2023 and 2025, market expectations appear to have adjusted downward as well.

Dividend yield has often sat below the industry average, though the company's minimum-dividend policy and treasury share cancellation plan are factors that could support per-share metrics going forward.

The swing from loss to profit in the first half of 2026 could serve as an important reference point for the market in assessing whether earnings are normalizing, but whether this trend continues structurally will need to be confirmed through subsequent quarterly results.

Some brokerages have raised their estimates and target prices to reflect this earnings improvement, though such views represent individual analyst judgments that could change depending on how results unfold.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-22

Bull factors

Structural Recovery Signals in Cosmetics

Q2 2026 cosmetics revenue hit a record quarterly high, with imported fashion and imported cosmetics both continuing double-digit growth. Yunjak's overseas sales have grown substantially, centered on China and Japan, with new market entries into India, the Middle East and Europe in preparation.

Amuse has also improved in revenue and profitability since its acquisition and is accelerating global channel expansion. If this trend continues, the cosmetics segment has room to become a stable pillar of overall performance.

Strengthened Shareholder Return Policy

The company has disclosed a value-up plan targeting an average shareholder return ratio above 30% for 2025-2027, including cancellation of 3% of treasury shares. It has also set dividend funding as a fixed proportion of standalone operating profit in an effort to improve dividend predictability.

If the treasury share cancellation is completed as planned, the reduction in shares outstanding could contribute to improved per-share metrics. This represents an explicit policy tool for enhancing shareholder value, separate from the earnings recovery itself.

First-Half 2026 Turnaround to Profit

Both Q1 and Q2 2026 saw consolidated operating profit and net profit turn positive, moving out of the loss phase seen in 2025. Recovery in premium consumption and increased foreign tourist inflows are cited as having driven sales growth through department store channels.

Profit size declined from Q1 to Q2, but this is attributed to seasonally slower demand, and the annual trend still shows improvement. Whether this rebound continues into the second half is the next point to watch.

Bear factors

Core Subsidiaries Losing Ground

Shinsegae Tomboy's Q2 2026 revenue declined year over year and its operating line turned negative. Amuse Korea also saw a sharp revenue decline and an operating loss over the same period, which has been attributed to upfront investment for overseas expansion.

In contrast to the sharply improved standalone results at the parent company, weakness at these two consolidated subsidiaries is clouding the overall picture. Whether these subsidiaries rebound remains a key variable for the quality of future consolidated results.

Structural Risk in Import Brand Distribution

A significant portion of Shinsegae International's fashion and cosmetics revenue depends on domestic distribution rights for overseas brands.

There have been cases in which overseas brands built a sales base domestically and then switched to direct operation, meaning termination of specific brand contracts can directly affect revenue and profit.

Expanding the share of proprietary brands moves in the direction of mitigating this risk, but dependence on distributed brands remains far from low. As a result, changes in individual brand contracts can act as a factor amplifying earnings volatility.

2025 Loss and Restructuring Uncertainty

Consolidated operating profit for 2025 came in at negative KRW 11.5 billion, and revenue also declined from the prior year. This appears to have coincided with a portfolio restructuring, which could make future growth-rate comparisons more difficult given the lower revenue base.

Net profit stayed slightly positive, but this appears attributable to non-operating factors and should be interpreted separately from core business profitability recovery. It remains necessary to clarify whether the improvement in the first half of 2026 represents a new baseline following this structural change.

Risk factors

Brand and Distribution Rights Risk

Expanding direct entry by overseas brands and termination of distribution contracts represent a structural risk that can directly affect fashion and cosmetics revenue. In particular, if revenue is concentrated in specific brands, contract changes can create a larger earnings shock.

Expanding the share of proprietary brands works to mitigate this, but restructuring the business in a short period is not easy.

Subsidiary Performance Risk

Continued weakness at Shinsegae Tomboy and Amuse Korea could undermine the overall quality of consolidated results. In the case of Amuse Korea, investment costs for overseas expansion are weighing on near-term earnings. Uncertainty around the timing of a turnaround at these subsidiaries reduces the predictability of results.

Consumption Cycle and China Risk

Company performance is closely tied to the premium consumption cycle and foreign tourism demand, so a slowdown in consumer sentiment or a decline in tourist inflows could again destabilize results.

Dependence of proprietary cosmetics brands on China sales has historically amplified earnings volatility, so shifts in Chinese consumption trends could again pose a risk. These macro variables are external factors that are difficult for the company to control directly.

What to watch next

Early November 2026
Around this time the Q3 preliminary results are typically disclosed; it will be worth checking whether subsidiaries such as Shinsegae Tomboy and Amuse Korea rebound and whether cosmetics segment growth continues.
Second half of 2026
This period is a point to check the early results of Yunjak's entry into new markets such as India, the Middle East and Europe, and the progress of Amuse's global channel expansion.
Early 2027
This is the time to confirm whether the remaining portion of the 2025-2027 treasury share cancellation plan is executed and check progress toward the 30% shareholder return ratio target.
Around February 2027
This is when the dividend decision for fiscal year 2026 is typically disclosed, allowing confirmation of whether the company's stated minimum-dividend policy is upheld.

Overall view

Shinsegae International moved through a full-year operating loss and revenue decline in 2025, then turned both consolidated operating profit and net profit positive in the first half of 2026, driven by growth in cosmetics and imported fashion.

However, unlike the improvement in the parent's standalone results, core subsidiaries such as Shinsegae Tomboy and Amuse Korea remain weak, creating a clear divergence within the consolidated results.

The company is strengthening shareholder returns through a value-up plan targeting an average return ratio above 30% for 2025-2027 and cancellation of 3% of treasury shares, while positioning overseas expansion of proprietary brands such as Yunjak and Amuse as a growth driver.

Distribution-rights risk from expanding direct entry by overseas brands, along with volatility in the premium consumption cycle including in China, remain potential headwinds.

Whether the earnings recovery in the first half of 2026 proves to be a structural trend rather than a one-off will require further confirmation through the coming quarters and the timing of a subsidiary turnaround.

Investors will want to watch the durability of cosmetics segment growth, the timing of subsidiary normalization, and the execution of the shareholder return plan together.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.