High Base + High Inflation... Shinsegae 1Q Operating Profit 152.4 Billion KRW, Down 6.8%

Sales of 1.5634 trillion KRW... 11.5% decrease
Department store operating profit 110.3 billion KRW, down 9.2%
Impact of special incentives payment + increased management fees due to inflation

Shinsegae announced on the 10th that its consolidated operating profit for the first quarter of this year was 152.4 billion KRW, a 6.8% decrease compared to the same period last year. During the same period, sales amounted to 1.5634 trillion KRW, down 11.5%. Net profit was 128.6 billion KRW, a 14.8% decrease.

The department store business recorded sales of 620.9 billion KRW in the first quarter of this year, a 6.1% increase compared to the first quarter of last year. Operating profit decreased by 9.2% to 110.3 billion KRW due to special incentives paid for last year's record performance and increased management expenses linked to inflation. This performance includes separate subsidiaries in Gwangju, Daegu, and Daejeon Shinsegae.

In the case of Shinsegae DF, sales in the first quarter of this year decreased by 33.8% to 511.2 billion KRW, but operating profit turned positive at 24.3 billion KRW. This was due to an increase in sales from individual travel (FIT) and the effect of a refund from a 50% reduction in patent fees last year.

A Shinsegae official stated, "Despite the challenging business environment due to high interest rates and inflation, we achieved growth in the department store’s scale and improved the performance of consolidated companies such as DF. We will continue to strengthen our structure and sustain performance through constant spatial innovation and enhancement of online content."

Shinsegae Department Store Main Branch [Photo by Shinsegae].

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