Revenue from duty-free stores, some standalone stores in Seoul, and department stores will suffer and its earnings in cosmetics division will decline inevitably, said analyst Park Hyeon-jin.
Its revenue in the first quarter will rise 5.5 percent on-year to 1.60 trillion won and operating profit by 6.7 percent to 249.4 billion won, missing the market expectations, estimated the analyst.
Duty-free stores will suffer further in the second quarter and the growth rate of department stores and door-to-door sales, also dependent on Chinese customers, will fall by close to 5 percent, said Park.
Its relatively low exposure in China, though, compared to its rivals, could be positive in that its stock price will not be affected, noted the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)