[Featured Stock] BGF Retail, 8 Consecutive Days of Decline... Continuous New Lows

BGF Retail has been declining for eight consecutive trading days, continuously hitting new 52-week lows.

As of 9:17 AM on the 26th, BGF Retail is trading at 106,200 KRW, down 1,800 KRW (1.67%) from the previous day. During the session, the price dropped to 105,700 KRW, marking a new 52-week low.

The slow recovery in earnings is interpreted as having a negative impact on the stock price. BGF Retail's operating profit for the second quarter of this year is expected to fall short of market expectations. Kim Myung-joo, a researcher at Korea Investment & Securities, said, "BGF Retail's second-quarter earnings are projected to show sales of 2,254.1 billion KRW, a 7.4% increase compared to the same period last year, and an operating profit of 77.5 billion KRW, a 0.8% decrease. While sales meet market expectations, operating profit is expected to fall short by about 4%." The recovery in same-store sales growth remains slow. Same-store sales growth for BGF Retail in the second quarter is estimated to be around 1.4% to 1.7%. Researcher Kim explained, "Although the earlier-than-usual onset of the summer heat is a positive factor, the recovery in same-store sales growth is slow compared to the rapid start of the heat. The slow recovery in same-store sales growth is presumed to be due to a combination of factors, including a decrease in foot traffic caused by increased overseas travel by domestic consumers and increased low-price consumption through online channels amid a sluggish economic recovery." He added, "It is necessary to slightly lower expectations for BGF Retail's second-quarter earnings and stock price recovery."