Investing in Korea | Opposite Strategies For Two Industry Leaders | Comparing LotteMart and Emart

Описание: Over the course of the pandemic, E-Mart and LotteMart (under the umbrella of Lotte Shopping) took extremely different approaches to the high liquidity environment. Now that the dust has settled and the world economy has gone from boom to bust, we're starting to see the effects of these strategies in real time. Today, we're going to talk about what material actions both companies took and how those actions have helped shape their current top and bottom lines.

One big thing to note that completely undermines the conclusion that I came to in this video: Lotte Shopping's bottom line came in WAY short of market expectations. I was basing my opinion on the market expectation of 56 billion won+ in net profit for Q3. As of yesterday's announcement, Lotte Shopping actually reported a net LOSS of 95 billion won+. LotteMart's OP, however, is significantly UP 178.6% when compared to last year, which really highlights the importance of looking at all aspects of a stock before buying in. Losses to Lotte Shopping were sustained in other aspects of their operations like electronics retailer Lotte Himart, their international locations (specifically in China), and basic inflationary and supply chain pressures.

Just a reminder that nothing we say here should be considered legal or financial advice, we're just here to talk about what's going on in the market. All opinions here are my own, and should be treated as such.

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Relevant Links

Materials, parts makers drive Korea's 2021 M&A boom (KED, 2022)
https://www.kedglobal.com/m-as/newsVi...

Vic Markets are becoming Lotte Mart Maxxes (Joongang Daily, 2022) https://koreajoongangdaily.joins.com/...

Lotte Shopping sinks into red with net loss of 95.1 billion won in Q3 (Joongang Daily, 2022)
https://koreajoongangdaily.joins.com/...

Lotte Mart offers packages for second time this year (Joongang Daily, 2021) https://koreajoongangdaily.joins.com/...

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