April 18, 2024

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Its revenue in the first quarter will rise 7.1 percent on-year to 952 billion won while its operating profit will fall 31.8 percent to 13.2 billion won, forecast analyst Seong Jun-won. 

Its operating profit from domestic duty-free sector will come in at 21.9 billion won but outlets at Changi Airport and hotel and leisure division will suffer 4.1 billion won and 4.6 billion won operating losses, respectively, added the analyst. 

If the territorial dispute between Japan and China in 2012 is any indication, the ongoing THAAD row will ease in approximately three months in time for China’s outbound tourism’s peak season, according to Seong. 

Shilla’s downtown duty-free stores will hit the bottom in the second quarter and begin to recover fast from the third quarter, forecast the analyst.
Losses from overseas stores will also shrink while the business will grow in size as branches in Phuket, Tokyo and Hong Kong will open, said Seong adding that its operating profit will reach 73.6 billion won this year and surge to 115.8 billion won in 2018. 

By Hwang You-mee (glamazon@heraldcorp.com)