Shinsegae Q2 Operating Profit 149.6 Billion KRW... 20.2% Decrease YoY

Sales Decrease of 16% to 1.5759 Trillion Won

Shinsegae announced on the 9th that its consolidated operating profit for the second quarter was 149.6 billion KRW, a 20.2% decrease compared to the same period last year. Sales for the same period fell 16% to 1.5759 trillion KRW.

Looking at each business segment, department store sales increased by 0.8% year-on-year to 628.4 billion KRW. The cumulative sales for the first half reached 1.2493 trillion KRW, maintaining a growth streak for 10 consecutive quarters since the first quarter of 2021. However, operating profit declined 23.9% to 92.1 billion KRW due to increased administrative and promotional expenses influenced by inflation.

Shinsegae DF continued its profitable management with an operating profit of 40.2 billion KRW. Although sales dropped 40.3% year-on-year to 485.1 billion KRW, the company explained that operational efficiency improved due to an increased share of individual travelers.

Shinsegae Central City also saw sales rise 11.4% year-on-year to 89.1 billion KRW. Operating profit grew 33.8% to 8.7 billion KRW, driven by higher hotel occupancy rates and improved performance of leased stores.

However, Shinsegae International recorded sales of 333.8 billion KRW and operating profit of 18.4 billion KRW, down 13.1% and 52.5% respectively from the same period last year. Shinsegae Casa’s sales also fell 18.8% to 67.8 billion KRW, with an operating loss of 5.3 billion KRW.

A Shinsegae official stated, "Despite the challenging business environment due to high interest rates and inflation, we achieved performance improvement based on solid management of our consolidated subsidiaries such as DF and Central City, along with the department store’s external growth."

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