"Record High Performance" Shinsegae Inter's Operating Profit Reaches 92 Billion KRW Last Year, Up 172% YoY

[Asia Economy Reporter Eunmo Koo] Shinsegae International achieved its highest-ever performance last year despite the COVID-19 situation.

Shinsegae International announced on the 8th that it recorded sales of 1.4508 trillion KRW and an operating profit of 92 billion KRW last year. Compared to the previous year, sales increased by 9.5% and operating profit by 172.4%. This surpasses the pre-COVID-19 levels, with sales up 1.8% and operating profit up 8.9% compared to 2019, the previous record year.

All business divisions showed balanced performance, with imported fashion and imported cosmetics experiencing strong growth due to increased demand for luxury goods, and the remarkable progress of its own fashion brand. Sales of imported fashion and imported cosmetics increased by 21.5% and 24.5% respectively compared to the same period last year, while sales of its own fashion brand Studio Tomboy rose by 10%.

Its own online mall S.I.VILLAGE quickly responded to the market’s shift to online distribution, achieving transaction volume of 233 billion KRW last year. This represents about an 86-fold increase from the 2.7 billion KRW transaction volume at its launch in 2016, showing industry-leading growth.

Based on its record performance, Shinsegae International is strengthening shareholder returns. At the board meeting held on the same day, a cash dividend of 1,500 KRW per common share for the 2021 fiscal year was approved. This is a 36% increase compared to the previous year. The dividend yield also rose from 0.7% last year to 1.02%.

Shinsegae International plans to actively pursue new businesses and improve its business structure through an online shift this year. To discover new growth engines, it established a new business team at the end of last year and plans to make bold investments and actively pursue mergers and acquisitions (M&A) in businesses with high future growth potential. S.I.VILLAGE will undergo a large-scale renewal this year to enhance user convenience. In addition, it will focus its capabilities on maximizing business efficiency through bold digital-centered structural improvements.

A Shinsegae International official said, “Not only imported brands but also our own fashion and beauty brands are showing good results, and we expect continuous improvement in our own performance,” adding, “This year, we will continue good results by actively pursuing new businesses and business efficiency.”

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