Why Doesn't Coupang Reduce Its Warehouses?…Conditions for a Share-Price Recovery | Stockholic

The Stockholic host points out that even after subtracting the fine of 4 hundred-million dollars plus 1000 ten-thousand dollars from Coupang's quarter 2 operating loss of 5 hundred-million dollars plus 5600 ten-thousand dollars, a deficit of 1 hundred-million dollars plus 4600 ten-thousand dollars remains, and says the causes beyond the fine need to be analyzed. The host explains that despite 2470 ten-thousand purchasing customers in product shopping, up 3% year over year, and increased revenue, expanded advertising and promotions and order volumes below expectations increased the fixed-cost burden. Using an analogy of receiving 80 orders at facilities equipped to handle 100 items, the host explains how logistics costs per item rise and sets out the conditions needed for management's choice to maintain facilities while waiting for customers to return to work. The host says that, based on approximately 74 hundred-million dollars in quarter 2 revenue from the existing shopping business, a 1% point change in margin amounts to approximately 7400 ten-thousand dollars, making it important to monitor profitability. Among new businesses such as Taiwan, Coupang Eats, Play, and Farfetch, investment in Taiwan accounts for the largest share of this year's losses, and the host points out that transferring experience from Korea and achieving local profitability are separate matters. On an adjusted EBITDA basis, the existing shopping business recorded 3 hundred-million dollars plus 8200 ten-thousand dollars, down 42% year over year, while new-business losses of 2 hundred-million dollars plus 1900 ten-thousand dollars declined slightly. The host reports that management expects the existing shopping business's margin to recover to its level before the personal-information incident by the middle of next year. The host identifies purchasing customers, the existing shopping business's margin, which was 5.1% in quarter 2, new-business losses, and costs from the Incheon logistics-center fire to be reflected in quarter 3 as points to watch in the next earnings report, concluding that recovery in Korean shopping profitability should be assessed before the disappearance of the fine. All directional outlooks are conditional judgments by the speaker, not definitive predictions of short-term prices.