Shinsegae Posts Record Q2 Performance with Operating Profit of 96.2 Billion KRW and Return to Profitability (Comprehensive)

[Asia Economy Reporter Lim Chun-han] Shinsegae announced on the 12th that it recorded its highest-ever performance in the second quarter, following the record set in the first quarter.

Shinsegae disclosed that its consolidated operating profit for the second quarter of this year was tentatively estimated at 96.2 billion KRW, turning profitable compared to the same period last year (operating loss of 48.6 billion KRW). Sales increased by 37.6% year-on-year to 1.3953 trillion KRW. Net profit also turned positive at 16.6 billion KRW.

Shinsegae Department Store's second-quarter sales grew 15.0% year-on-year to 496.9 billion KRW. Operating profit reached a record high of 67.0 billion KRW, nearly tripling compared to the previous year. Compared to 2019, sales increased by 11.0% and operating profit by 56.5%. Growth was driven particularly by overseas fashion (42.8%), luxury goods (55.4%), women's fashion (26.3%), and men's fashion (23.0%). Shinsegae Department Store is expected to continue its strong performance in the second half of the year through ongoing offline innovations such as the opening of Daejeon Shinsegae Art & Science on the 27th and renovations at the Gangnam and Gyeonggi branches.

Shinsegae International's second-quarter sales rose 18.6% year-on-year to 340.7 billion KRW, with operating profit turning positive at 26.5 billion KRW. The cosmetics sector (44.6%) and overseas fashion (15.9%) showed strong growth driven by increased demand for luxury brands and premium niche perfumes, leading sales growth. Domestic fashion improved in sales and profitability through brand optimization and strengthening of online business, while the Ja-ju division also achieved good results with hit product development and increased online sales.

Shinsegae DF recorded second-quarter sales of 560.5 billion KRW and operating profit of 19.2 billion KRW, continuing its consecutive quarterly profitability. This was aided by the change to a revenue-based rent system at Incheon Airport duty-free shops since September last year and reduced accounting costs due to asset impairments recognized in 2019 and 2020.

Central City’s second-quarter sales increased 24% year-on-year to 65.5 billion KRW, with operating profit turning positive at 4.1 billion KRW.

Shinsegae Casa’s second-quarter sales grew 26.1% year-on-year to 48.3 billion KRW. However, it posted an operating loss of 2.6 billion KRW due to investments related to new store openings.

A Shinsegae official stated, “Despite the challenging business environment, we recorded the highest-ever operating profit in the second quarter based on balanced growth in department store online and offline channels and improved performance of subsidiaries. We expect even better results in the second half of the year, supported by offline channel strengthening such as the opening of Daejeon Shinsegae Art & Science and the Gangnam branch renewal, as well as continuous expansion of subsidiaries like Shinsegae International and Shinsegae Casa.”

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