Shinsegae International Q3 Operating Profit Up 71%... Fashion and Beauty Benefit from Reopening (Comprehensive)

[Asia Economy Reporter Song Seung-yoon] Shinsegae International posted strong earnings in the third quarter of this year, benefiting from the reopening (resumption of economic activities) with increased demand for fashion and cosmetics.

Shinsegae International announced on the 7th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 24.2 billion KRW, a 71% increase compared to the same period last year. Sales rose 10.6% to 387.5 billion KRW compared to the same period last year. Net profit increased by 66.7% to 16.3 billion KRW.

Despite concerns over an economic downturn, demand for imported luxury brands and in-house fashion brands continued, setting a record high performance for the third quarter. In particular, profits increased significantly as the sell-through rate of new products at regular prices rose. The cumulative operating profit up to the third quarter of this year reached 96 billion KRW, already surpassing last year’s annual figure. Last year’s annual operating profit was 92 billion KRW.

All business divisions including fashion, beauty, and living showed balanced performance. Especially, luxury brands with a solid customer base such as Brunello Cucinelli, Chrome Hearts, and Alexander Wang led sales growth, resulting in double-digit growth in fashion sales. Additionally, UGG, famous for its shearling boots, saw its third-quarter sales more than double compared to the same period last year. The contemporary brand Enfold, newly launched in early September, showed rapid growth by achieving over 200% of its internal sales target within just one month of launch.

In in-house fashion brands, stable growth continued mainly in women’s wear. Sales of the in-house women’s wear brand BOBV increased by 20%, and Ilail, which focuses on premium knitwear such as cashmere amid rising demand for high-quality materials, saw sales grow by 50.5%. The cosmetics division recorded a 14% increase in sales compared to the same period last year, driven by the strong performance of niche perfume brands such as Diptyque, Byredo, and Santa Maria Novella. The in-house cosmetics brand ROIBI’s third-quarter sales increased by 104.3% year-on-year due to continuous expansion of distribution channels. The Jaju business division is preparing momentum for sustainable growth by launching a wellness line recently as part of strengthening the health category, along with strategic products such as Norain underwear and eco-friendly household goods.

A Shinsegae International official said, "We achieved good results as solid demand continued in fashion and cosmetics after the reopening," adding, "We will thoroughly prepare for economic uncertainties and maintain stable performance."

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