Emart posts 43 billion won second-quarter operating loss on Starbucks drag

Emart reported a second-quarter consolidated operating loss of 43 billion won on revenue of 6.92 trillion won, as Starbucks Korea operator SCK Company fell to an 18.4 billion won loss after a May marketing controversy and the cancellation of its annual Summer e-Frequency campaign. That overshadowed recovery in Emart's core discount-store business, where standalone revenue rose 3.6% to 4.11 trillion won, operating profit climbed 64.1% to 25.6 billion won and same-store sales grew 3.8% for a third straight quarter. After the results, Samsung Securities cut its target price for Emart by 10% to 108,000 won from 120,000 won but kept a "Buy" rating, citing continued subsidiary weakness at SCK Company, Shinsegae Engineering & Construction and SSG.com even as July discount-store same-store sales rose 8.6% and standalone total sales increased 9.6% to 1.51 trillion won.

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