Shinsegae International Reports 69% Decrease in Q1 Operating Profit

Shinsegae International announced on the 10th that its operating profit for the first quarter of this year was 10.2 billion KRW, a 69% decrease compared to the same period last year. Sales during the same period fell 11.4% to 312.2 billion KRW.

Shinsegae International Cheongdam Building.
[Photo by Shinsegae International]

According to Shinsegae International, last year’s performance was affected by the winding down of the domestic fashion division’s sourcing business, termination of contracts with some brands in the overseas fashion division, and a one-time increase in labor costs due to additional incentive payments.

Excluding temporary factors, the five major women’s wear brands that Shinsegae International is nurturing?VOV, JIGOTT, Studio Tomboy, Dellarana, and Ilaile?saw an 11.2% increase in sales compared to the previous year. Among all brands showing growth, Ilaile (+49.2%) and Dellarana (+22.4%), which started their businesses in 2020, recorded particularly high sales increases.

In overseas fashion, high-end brands such as Brunello Cucinelli and Chrome Hearts performed well amid the global trend of Quiet Luxury.

The cosmetics division’s sales increased by 16.8% year-on-year, maintaining strong growth. Niche perfume brands delivered good results, and sales of in-house brands Yeonjak (+118.3%), Poare (+97.5%), and Roybi (+65.9%) rose significantly.

Shinsegae International plans to secure new growth engines by launching more than four new imported brands in fashion and more than three in cosmetics this year. In fashion, it will introduce luxury, contemporary, and sports brands that are gaining popularity in the global market, and in cosmetics, it plans to build a strong portfolio through perfume brands that continue to show high growth.

At the same time, it will actively promote the globalization of in-house brands such as Studio Tomboy and Poare to strengthen competitiveness.

A Shinsegae International official said, “The first quarter was a transitional period due to the high base effect from last year and changes in the brand portfolio,” adding, “From the second quarter, we expect gradual recovery in performance through the introduction of new brands and business efficiency improvements.”

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