Shinsegae's second-quarter operating profit more than doubled from a year earlier as strong department-store performance and improved earnings at subsidiaries lifted results above expectations, but several brokerages cut their target prices for the stock after the release as they lowered valuation multiples for the department-store sector. Operating profit rose 121.9% to 167.1 billion won, beating market consensus by 9.5%, while consolidated second-quarter revenue increased 5.1% to 1.7804 trillion won. Korea Investment & Securities cut its target price to 750,000 won from 900,000 won, Shinhan Securities lowered its target to 700,000 won from 830,000 won, and DB Securities reduced its target to 650,000 won from 900,000 won. All three maintained buy ratings. The brokerages said Shinsegae's earnings recovery at its department stores and duty-free operations remains intact, but they reduced target multiples to reflect weaker near-term industry momentum, lower global department-store valuations and concern that stock-market volatility and declining asset values could weigh on consumption. Shinhan Securities lowered the EV/EBITDA multiple applied to Shinsegae's department-store business to 6 from 7. Analysts said foreign tourist growth and spending by VIP customers should remain supportive, while depreciation pressures may ease in the second half. Shinhan Securities forecast 2024 operating profit at 806.6 billion won, while DB Securities projected 767.0 billion won.