Lotte Shopping (023530) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Lotte Shopping is Korea's largest integrated retailer, running many channels within a single company — marts and supermarkets (grocery), department stores, Hi-Mart, Lotte On, Lotte Cinema and home shopping. Its structure is to build revenue bulk with the “sell a lot cheaply” mart business and earn profit at the higher-margin department stores. In Q1 2026 department-store revenue grew 8.2% and revenue from foreign customers surged 92%, lifting department-store operating profit by 47%, and a fair-disclosure of preliminary results on May 11 confirmed a strong recovery of company-wide operating profit (+70.6%) and net profit (+694%) along with a narrowing e-commerce loss. The points worth noting are that department-store margin recovery and a shrinking e-commerce loss are continuing, and with a P/B of 0.34x and last year's trailing P/E of 101x being an illusion of depressed profit that falls to the low double digits on a forward basis, the low-P/B turnaround logic is strong — but with a current ratio of 52%, an interest-coverage ratio below 1x and borrowings due to be repaid concentrated in 2026-2027, the financial burden is the key issue.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Offline Retail (Asset Plays)” (Retail, Consumer Goods & Food · Distribution & Wholesale/Retail), a type typically read first through P/E.
Offline retail is a consumer-facing business that earns steady profits from running stores, so price-to-earnings (P/E) — the price against the profits it makes — is a natural starting point. Sales and margins tend to be relatively stable, which makes the earnings stream easier to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 55.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 1.8% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 3.6% higher than a year earlier.
- ROE is 1.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.7%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2020-12-31
Largest shareholder Lotte Corporation 40% (corporate)
Controlling bloc incl. related parties 61.88%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Lotte Shopping is Korea's largest integrated retailer, running several retail channels within a single company. Its largest revenue share comes from grocery (Lotte Mart and Lotte Super), which posted revenue in the ₩1.3-trillion range in Q1, while its highest-margin business is department stores. Beyond that it holds the electronics chain Lotte Hi-Mart, the online mall Lotte On (e-commerce), Lotte Cinema (movie theaters), home shopping and more. In other words, its structure is to build revenue bulk with the “sell a lot cheaply” mart business and earn profit at the higher-margin department stores. In Q1 2026 department-store revenue grew 8.2% and, especially, revenue from foreign customers surged 92%, lifting department-store operating profit by 47%, while the chronically loss-making e-commerce business sharply narrowed its loss.
The latest close is ₩114,500 and the market capitalization is ₩3.2 trillion. The price sits below its 20-day moving average (₩130,330) and below its 60-day moving average (₩157,650). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.3, a neutral level. The one-month change is -34.4%, the three-month change is -13.1%, and the position relative to the 52-week high is -43.7%. Relative strength versus the KOSPI is 59 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 59% of all stocks. Over the past three months it outpaced the index by 0.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Looking at the valuation metrics, the gap between “last year's numbers” and “this year's numbers” is large. The P/E ratio (how many times one year of profit the price represents) appears at 101x, but this is an illusion arising because 2025 net profit was depressed to ₩51.5 billion by the aftermath of past impairment charges. Q1 2026 net profit of ₩143.9 billion alone is already close to three times last year's full-year figure, so as profit normalizes the P/E falls sharply. Conversely, the P/B (how many times net assets the price represents) is 0.21x, meaning it trades at a third of net assets. The finances, though, have parts to watch. The debt ratio (debt against equity) is 139%, the current ratio (assets convertible to cash against debt due within a year) is a low 52%, and with an interest-coverage ratio (how many times operating profit covers interest) below 1x, the interest burden is heavy. ROE (how much is earned in a year on equity) is a still-low 0.3%, but this is a figure at the point where profit has just begun to recover.
Over five years, revenue eased gradually from ₩15.5 trillion (2021) to ₩13.7 trillion (2025), the look of a mature market (about -3% a year). The direction of profit, however, differs. Operating profit steadily improved from ₩207.6 billion in 2021 to ₩547 billion in 2025, and net profit swung from a large loss of ₩-968 billion in 2024 to a ₩51.5 billion profit in 2025, then jumped again to ₩143.9 billion in Q1 2026 (+694% year on year). Q1 operating profit was also ₩252.9 billion, up 70.6% from the prior year. In other words, revenue is stagnant but the profit structure is improving, centered on the higher-margin department stores — an “earnings turnaround” is the key. For the full year, since Q1 is the department-store peak season the remaining quarters will be somewhat lighter, but if this recovery trajectory continues, full-year net profit has ample room to normalize well above last year's ₩51.5 billion. From this view the forward P/E falls to the low double digits, a completely different picture from last year's trailing 101x.
Recent disclosures show earnings improvement and financial management appearing together. A fair-disclosure of Q1 preliminary results on May 11 confirmed a strong recovery — operating profit +70.6% and net profit +694% — and on June 11 the company disclosed a cash and in-kind dividend decision and an investor briefing (IR). At the same time, across May and June, securities registration statements and issuance-result reports related to debt securities (corporate bonds) came out one after another, read as fundraising to manage borrowings maturing heavily in 2026-2027. On July 1 a disclosure “clarifying a rumor or media report” appeared, showing heightened market attention amid a short-term surge in the share price.
The strengths are clear. Profit is actually recovering with department stores at the core (Q1 operating profit +70.6%, net profit +694%), backed by a surge in revenue from foreign customers and a narrowing e-commerce loss. The P/B of 0.34x is heavily discounted to net assets, and last year's trailing P/E of 101x is an illusion created by depressed profit, so on a forward basis it falls instead to the low double digits. The cautions are also clear. With a current ratio of 52% and an interest-coverage ratio below 1x, financial headroom is tight, and with borrowings due to be repaid concentrated in 2026-2027, operating cash could be drawn toward that. Revenue itself is stagnant in a mature market. In sum, if department-store margin recovery and a shrinking e-commerce loss continue and it absorbs the borrowing repayments without strain, the low-P/B turnaround logic strengthens; conversely, if consumption slows or the financial burden grows, the pace of recovery could slow.
🔎 Valuation vs peers Undervalued
Compared against listed retailers with overlapping business character among department-store and complex-retail names — Hyundai Department Store (department-store focused), Hyundai Home Shopping (retail, low P/B) and Shinsegae (department-store and complex retail) as the reference set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Department Store | 11.05x | 0.50x | 4.03% |
| Hyundai Home Shopping | 10.58x | 0.45x | 5.09% |
| Shinsegae | 289.71x | 0.86x | 1.75% |
(a) Relative to net assets, the P/B of 0.34x is the lowest in the peer set, placing it at a large discount to asset value. (b) The trailing P/E of 101x is an illusion arising from 2025 net profit being depressed to ₩51.5 billion by the aftermath of past impairment charges; Q1 net profit of ₩143.9 billion alone already far exceeds last year's full-year figure, so as profit normalizes the forward P/E falls to the low double digits. (c) In other words, on last year's confirmed-earnings metric (high P/E) alone it looks expensive, but on this year's recovering-profit basis it appears as an undervalued stretch discounted on both net assets and earnings. That said, liquidity and the borrowing-repayment burden are variables for the pace of recovery.
Price history Close · MA20 · MA60
The latest close is ₩114,500 and the market capitalization is ₩3.2 trillion. The price sits below its 20-day moving average (₩130,330) and below its 60-day moving average (₩157,650). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.3, a neutral level. The one-month change is -34.4%, the three-month change is -13.1%, and the position relative to the 52-week high is -43.7%. Relative strength versus the KOSPI is 59 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 59% of all stocks. Over the past three months it outpaced the index by 0.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +0.08% / 6M +8.06% / 12M -17.57%
Key metrics Computed vs sector median
Valuation
The P/E of 62.83x is above the sector median (11.05x). The P/B of 0.21x is below the sector median (0.47x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 1.2%, above the sector average (1.0%). The operating margin is 4.7%. The debt ratio is 140.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $10.2B | $9.8B | $9.7B | -1.77% ↑ faster |
| Operating profit | $357.2M | $332.4M | $384.3M | +15.62% ↑ faster |
| Net profit | $122.5M | -$680.0M | $36.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $10.9B | $10.9B | $10.2B | $9.8B | $9.7B |
| Operating profit | $145.8M | $271.3M | $357.2M | $332.4M | $384.3M |
| Net profit | -$205.3M | -$228.0M | $122.5M | -$680.0M | $36.2M |
| Revenue CAGR | 4-yr avg -3.09% | ||||
Revenue fell 1.8% year over year (2023 ₩14.6 trillion → 2024 ₩14.0 trillion → 2025 ₩13.7 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 15.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.1%. The two-year revenue CAGR is -2.9%. In the most recent quarter (Q1 2026), revenue was 3.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 3.5%, is on the high side.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 55.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 1.8% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-11EarningsFair-disclosure of consolidated preliminary Q1 2026 results — revenue ₩3,581.6 billion (+3.6%), operating profit ₩252.9 billion (+70.6%), net profit ₩143.9 billion (+694%).Near term: stronger earnings momentum as a department-store-led profit recovery is confirmed. Medium term: grounds for the illusion of a high trailing P/E to dissolve as profit normalizes. Source
- 2026-05-15FilingFiling of the Q1 2026 quarterly report — detailed disclosure of results by segment (department store, grocery, electronics, e-commerce, culture) and financial position.Near term: allows checking detailed results by segment. Medium term: material for reviewing financial position such as debt and liquidity. Source
- 2026-05-28FilingFiling of a securities registration statement to issue debt securities (corporate bonds) — followed by finalized issuance terms, a prospectus and an issuance-result report.Near term: the fundraising process is proceeding. Medium term: refinancing in nature to meet borrowings maturing heavily in 2026-2027. Source
- 2026-06-09FilingSecurities registration statement finalizing debt-security issuance terms — corporate-bond issuance size, coupon and other terms confirmed.Near term: better visibility on meeting maturities as funding terms are fixed. Medium term: in a financial structure with a heavy interest burden, the impact of the funding rate on profit needs checking. Source
- 2026-05-29FilingCorporate governance report disclosure — disclosing governance status such as the board and shareholder rights.Near term: limited impact. Medium term: reference material for tracking whether shareholder returns and governance improve. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | ₩252.9 billion | ₩252.9 billion(+70.6%) | Confirmed | link |
| Q1 2026 net profit | ₩143.9 billion | ₩143.9 billion(+691.8%) | Confirmed | link |
| 2025 full-year revenue | 13₩738.4 billion | 13₩738.4 billion | Confirmed | link |
| 2026 full-year net profit (in-house estimate) | approx. ₩400.0 billion | — | Unverified | — |
Recent filings Source
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-09Disclosure
- 2026-06-04Disclosure
- 2026-06-04Amended filing
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-28Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-08OwnershipOwnership-change filing
- 2026-05-08OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.