"Strong Department Store and Subsidiary Improvement" Shinsegae Q3 Operating Profit 153 Billion KRW, Up 49.4% (Update)

Sales of 1.9551 trillion KRW and operating profit of 153 billion KRW... up 17.3% and 49.4% respectively
Daejeon A&S early stabilization, evaluation of online and offline content performance... continued growth of department stores
Shinsegae Inter, 7 consecutive quarters of year-on-year sales and operating profit growth, strong subsidiary performance

Shinsegae Department Store Main Branch (Photo by Shinsegae).

[Asia Economy Reporter Yuri Kim] Shinsegae continued its strong performance in the third quarter of this year, backed by solid results from its department stores and improved earnings from subsidiaries such as Shinsegae International.

Shinsegae announced on the 7th that its consolidated operating profit for the third quarter reached 153 billion KRW, a 49.4% increase compared to the same period last year. During the same period, sales rose 17.3% to 1.9551 trillion KRW. While sales met the market consensus (estimates) compiled by FnGuide, operating profit fell short of the consensus (173.6 billion KRW).

The department store business recorded sales of 609.6 billion KRW, up 19.8% year-on-year, and operating profit grew 50.5% to 109.4 billion KRW (including separate corporations in Gwangju, Daegu, and Daejeon). Increased outdoor activities boosted fashion demand, with mass categories such as women's fashion (31.7%), men's fashion (29.1%), and golf wear (33.7%) showing significant growth. Additionally, Chuseok holiday sales rose 21.1% year-on-year, contributing to overall expansion.

Notably, in the third quarter, Shinsegae Gangnam Store attracted millennial customers with its Young Contemporary specialty section; Centum City Store and Daejeon Shinsegae Art & Science hosted the industry's first large-scale Non-Fungible Token (NFT) event; and SSG.com strengthened its Shinsegae Department Store Mall specialty section. These differentiated contents introduced by Shinsegae are credited with contributing to sales. The Daejeon Shinsegae, which opened in August last year, also influenced results by becoming a landmark in the central region, attracting customers equivalent to half of the national population within a year.

Consolidated subsidiaries such as Shinsegae International and Shinsegae Central City also posted strong results. Shinsegae International’s third-quarter sales were 387.5 billion KRW, and operating profit was 24.2 billion KRW, marking increases of 10.7% and 71.0% respectively compared to the same period last year. This marks seven consecutive quarters of growth since the first quarter of 2021. Shinsegae DF recorded sales of 856.6 billion KRW and operating profit of 5.1 billion KRW. Shinsegae Central City posted sales of 85.4 billion KRW and operating profit of 22.6 billion KRW, driven by increased rental income from department stores and higher hotel sales. Shinsegae Live Shopping, incorporated into Shinsegae since August, leveraged differentiated content such as developing its own premium fashion brand, achieving sales of 42.9 billion KRW and operating profit of 1 billion KRW.

Shinsegae Casa recorded sales of 67.9 billion KRW, a 12.8% increase year-on-year, thanks to product competitiveness and the successful establishment of new stores and Good.com (online). Despite challenging conditions such as rising raw material prices and exchange rates, as well as a downturn in real estate and construction markets, the company achieved external growth.

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