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Shinsegae Department Store Main Branch.

[Asia Economy Reporter Yuri Kim] Shinsegae announced on the 11th that its consolidated operating profit for the first quarter of this year reached 163.6 billion KRW, a 32.4% increase compared to the same period last year. Sales during the same period rose 33.8% to 1.7665 trillion KRW. Net profit increased by 69.2% to 150.9 billion KRW.

On a separate basis, department store operating profit increased by 47.6% to 121.5 billion KRW. Sales grew 18.7% to 585.3 billion KRW (including separate corporations in Gwangju, Daegu, and Daejeon). Both sales and operating profit marked record highs for the first quarter.

The Daejeon Shinsegae Art & Science, which opened in August last year, successfully established itself in the market, and the reopening (resumption of economic activity) expectations contributed to strong performance with rapid recovery in popular categories such as men's fashion (23.7%), women's fashion (21.7%), golf wear (54.6%), and outdoor wear (28.6%). Online sales for Shinsegae Department Store in the first quarter grew by 14.2%. Shinsegae plans to accelerate the establishment of an integrated department store combining online and offline channels by opening a luxury hall at the Gyeonggi branch and launching a new golf specialty hall within SSG.com in the second half of this year.

Consolidated subsidiary performance also stood out. Shinsegae International recorded sales of 352.2 billion KRW and operating profit of 33.1 billion KRW, reflecting balanced growth across fashion, beauty, and lifestyle business sectors. These figures represent increases of 3.0% and 55.4%, respectively, compared to the previous year. Both sales and operating profit achieved the highest first-quarter results ever, continuing the growth trend from the fourth quarter of last year. Particularly, the fashion sector showed remarkable growth amid reopening expectations. Imported fashion sales grew by double digits year-on-year due to increased demand from younger customers for imported fashion and premium golf wear, and profitability of in-house fashion improved significantly through business efficiency enhancements.

Shinsegae DF posted sales of 772.1 billion KRW, up 61.2%, but recorded an operating loss of 2.1 billion KRW. Operating profit declined due to China's COVID-19 lockdown policies and the spread of the Omicron variant domestically. The company expects "performance to rapidly improve in the second half of this year due to China's economic stimulus measures and increased overseas tourism demand."

Central City also recorded sales of 69.5 billion KRW (up 16.5%) and operating profit of 15.3 billion KRW, driven by increased rental income from higher department store sales. Shinsegae Casa turned profitable for the first time in four years based on product competitiveness and an online strengthening strategy centered on Good.com. Shinsegae Casa plans to enhance competitiveness by opening more than 12 new stores within the year and launching the stay-type complex cultural space 'Casa Grande' in the second half of this year.

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