Shinsegae International Achieves Record-Breaking Q2 Performance Driven by Luxury Goods and Cosmetics

[Asia Economy Reporter Seungjin Lee] Shinsegae International achieved the largest performance ever for the second quarter.

Shinsegae International announced on the 12th that it recorded consolidated sales of 340.7 billion KRW and operating profit of 26.5 billion KRW for the second quarter. Compared to the same period last year, sales increased by 18.6%, and operating profit turned positive. This is an improvement compared to before the spread of COVID-19, with sales and operating profit increasing by 12.9% and 81.5%, respectively, compared to the second quarter of 2019.

Due to increased demand for luxury goods, the overseas fashion division and imported cosmetics business grew, resulting in the highest-ever sales and operating profit for the second quarter. Thanks to the strong second-quarter performance, Shinsegae International's cumulative sales (682.6 billion KRW) and operating profit (47.8 billion KRW) for the first half of the year also recorded the highest half-year results ever. First-half sales increased by 11.8% and operating profit by 407.7% compared to the same period last year.

By business division, sales in the overseas fashion division increased by 15.9% year-on-year as luxury and contemporary brand sales grew due to expanding demand from younger consumers and revenge consumption.

The cosmetics division saw a 44.6% increase in sales compared to the same period last year due to the expansion of the premium niche perfume business and increased domestic demand. Newly launched in-house brands such as Swiss Perfection and Poare quickly established themselves in the market, and steady sales growth is expected through the end of the year as the business stabilizes.

The domestic fashion division improved sales and profitability through continuous brand efficiency efforts and strengthening of the online business, while the Jaju business division also achieved good results by developing hit products aligned with trends and increasing online sales.

The e-commerce business continues to grow rapidly every year as luxury purchases through online channels become more active. Only 100% genuine products imported through official distribution rights, not parallel imports, are sold, enhancing customer trust and securing unique competitiveness, with plans to achieve sales exceeding 200 billion KRW by the end of the year.

A Shinsegae International official said, “Consumer sentiment, which had been suppressed for over a year due to COVID-19, has led to demand for luxury and premium products, resulting in record-breaking performance. Preference for overseas high-end brands is steadily increasing, and the performance of our in-house brands is continuously improving, so we expect good results in the second half of the year as well.”

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