Shinsegae International Reports 21.3 Billion KRW Operating Profit in Q1, Up 78%

Overseas Fashion and Cosmetic Business Strengthened
Domestic Fashion Online Turns Profitable with Growth

[Asia Economy Reporter Seungjin Lee] Shinsegae International posted solid results in its overseas fashion and cosmetics businesses in the first quarter, significantly improving its operating profit.

Shinsegae International announced on the 12th that its sales in the first quarter of 2021 reached 341.9 billion KRW, and operating profit was 21.3 billion KRW, up 5.7% and 77.5% respectively compared to the previous year. Net profit for the period was preliminarily estimated at 23.6 billion KRW, a 406% increase.

By business segment, sales in the overseas fashion division increased by 21.4% year-on-year due to growing demand among younger consumers for luxury and contemporary brands such as Celine and Maison Margiela.

The domestic fashion division improved business efficiency through brand optimization and strengthening online channels, successfully turning operating profit positive.

The cosmetics division saw an 18% increase in imported cosmetics sales year-on-year due to rising domestic demand for overseas brands.

Shinsegae International explained that overall performance is expected to improve through the end of the year thanks to strengthened domestic and international online sales of in-house brands such as VDL and Yeonjak, as well as the recovery of consumer sentiment in China.

The Jaju business division is also showing steady sales growth driven by increased online sales.

A Shinsegae International official said, “High demand for overseas brands in fashion and cosmetics continues, and we expect high growth this year supported by the expansion of our in-house brand performance.”

This content was produced with the assistance of AI translation services.