"Impact of Prolonged COVID-19" GS Home Shopping Q1 Operating Profit 37.2 Billion KRW... Up 16.6%
Transaction Amount 1.1282 Trillion KRW Up 3.0%, Sales 297.4 Billion KRW Down 0.1%
Mobile Shopping Transaction Share 54.7%, Mobile App Downloads Exceed 40.7 Million
[Asia Economy Reporter Yuri Kim] GS Home Shopping announced on the 26th that its operating profit for the first quarter of this year reached 37.2 billion KRW, a 16.6% increase compared to the same period last year. During the same period, the transaction amount rose 3.0% to 1.1282 trillion KRW. Sales slightly decreased by 0.1% to 297.4 billion KRW. Net profit for the period recorded a 23.3% increase to 39.2 billion KRW.
The growth in transaction amount is attributed to the increase in online shopping due to the prolonged COVID-19 pandemic. The improved operating profit reflects an increased proportion of food and daily necessities sales, improved gross profit margin, and a decrease in selling and administrative expenses ratio (-0.2%).
By channel, mobile shopping transaction amount grew 4.0% year-on-year to 617.1 billion KRW. Its share of the total transaction amount was 54.7%. During the same period, TV shopping transaction amount was 418.2 billion KRW, and internet shopping (PC) accounted for 75.2 billion KRW. GS Home Shopping’s mobile shopping application recorded 40.7 million downloads (excluding duplicates), surpassing 40 million for the first time.
By product category, the share of fashion accessories and apparel decreased due to the impact of COVID-19, but the shares of daily necessities and food increased by 2 percentage points and 3 percentage points respectively, supporting the performance.
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GS Home Shopping stated, "We will continue to strengthen our core business capabilities through expanding signature brands and digital transformation, and will also sustain more diverse synergy activities with our invested companies." They added, "With the merger scheduled with GS Retail in July, we plan to maximize synergy by integrating cross-channel marketing of both companies, developing online-to-offline (O2O) services, and enhancing fulfillment and last-mile delivery services to create new customer experiences."
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