"Post-Endemic Alternative Consumption Increase"... Hanwha Galleria Q3 Operating Profit Down 74% (Comprehensive)

Operating Profit of 2 Billion KRW · Sales of 120 Billion KRW

Hanwha Galleria recorded a disappointing performance in the third quarter due to the impact of increased alternative consumption following the endemic phase. The burden of increased expenses such as various fees during the company's personnel split process in March this year also affected the results.

Galleria Department Store Luxury Hall Exterior [Photo by Hanwha Galleria]

On the 14th, Hanwha Galleria announced that its consolidated operating profit for the third quarter of this year was 2 billion KRW, a 74% decrease compared to the same period last year. Sales during the same period decreased by 5% to 120 billion KRW. A net loss of 1.4 billion KRW was recorded.

Hanwha Galleria analyzes that the decline in performance is due to a decrease in customers visiting department stores as alternative consumption such as overseas travel increased after the endemic phase. Last year, consumption increased in luxury goods, electronics, and furniture due to relatively limited consumption types, whereas this year, consumption patterns have diversified as various regulations were eased.

Additionally, the increase in expenses such as various fees during Galleria's personnel split from Hanwha Solutions' business division in March also had an impact.

A Hanwha Galleria official said, "The endemic phase and various fees had a significant impact on this performance," adding, "Going forward, we will focus on strengthening VIP content, which is Galleria's unique advantage, and attracting competitive brands to secure new customers, while continuously discovering future growth engines including Five Guys."

Meanwhile, FG Korea, a Hanwha Galleria subsidiary operating Five Guys, recorded sales of 3.58 billion KRW in the third quarter of this year. Operating profit was not disclosed separately.

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