Shinsegae Achieves Record First-Quarter Earnings on Foreign Visitor Boom... Announces First Quarterly Dividend

Shinsegae Department Store Achieves Q1 Sales of KRW 1.8 Trillion, Up 10.9%
Operating Profit Reaches KRW 197.8 Billion, a 49.5% Increase Year-on-Year
Boost from Surge in Foreign Visitors and Strengthened Subsidiary Management
KRW 1,300 Divid

Shinsegae achieved its highest-ever first-quarter performance this year, driven by the renewal (renovation) of its core department store division, a surge in foreign visitors, and improved management efficiency at its subsidiaries.

On May 12, Shinsegae announced in a regulatory filing that its consolidated operating profit for the first quarter of this year reached KRW 197.8 billion, a 49.5% increase year-on-year. During the same period, revenue rose 10.9% to KRW 1.8471 trillion, while net income increased 88.5% to KRW 145.4 billion.

Shinsegae Department Store Main Branch Exterior. Provided by Shinsegae Department Store

Breaking down the results, first-quarter sales (transaction volume) for the department store business grew 13.0% year-on-year to KRW 2.0257 trillion, with operating profit up 30.7% to KRW 141 billion, marking a record high.

The Shinsegae Gangnam branch, which completed its renovation over the past two years, contributed to the rebound by offering differentiated content in luxury goods and gastronomy. The main branch further bolstered performance by opening 'The Heritage' and enhancing investments in projects such as 'The Reserve' and 'The Estate.'

Interest in Korean content (K-Content) continued to drive department store sales in the first quarter, with foreign customer sales at the main branch up 140% year-on-year. Total foreign sales at all department stores also nearly doubled from a year earlier, with annual sales expected to surpass KRW 1 trillion this year.

Profitability at consolidated subsidiaries also improved significantly. Shinsegae International reported first-quarter sales of KRW 295.6 billion and operating profit of KRW 14.8 billion, up 15.7% and 452.6% year-on-year, respectively. Double-digit growth in imported fashion (+35.2%) and imported cosmetics (+20.0%) drove the strong performance.

Shinsegae DF, which handles the duty-free business, expanded partnerships with global chains targeting free independent travelers (FIT) and introduced merchandise collaborations with K-pop artists. As a result, first-quarter operating profit turned positive, reaching KRW 10.6 billion compared to a loss a year ago. Revenue in the same period rose 5% to KRW 589.8 billion. Shinsegae DF, citing rental cost burdens, returned its business rights for the Incheon International Airport DF2 section on April 27 and completed its final withdrawal, raising expectations for improved future performance.

Additionally, Shinsegae Central continued its growth with first-quarter sales of KRW 98.8 billion (+11.4%) and operating profit of KRW 26 billion (+17.1%). Shinsegae Casa also posted sales of KRW 111.4 billion (+78.8%) and operating profit of KRW 1.3 billion (+1,200%). Shinsegae Live Shopping, the home shopping business, recorded sales of KRW 89.8 billion (+10.7%) and operating profit of KRW 7.4 billion (+29.8%), both remaining in the black.

Alongside its first-quarter earnings announcement, Shinsegae held a board meeting and resolved to pay its first-ever quarterly dividend. The record date is May 29, with a total dividend payout of approximately KRW 11.4 billion and a cash dividend of KRW 1,300 per common share.

A Shinsegae representative stated, "Despite challenging external conditions, we achieved substantial growth in both scale and profitability through proactive business structure improvements and strategic investments. Moving forward, we will continue our active shareholder return policy to enhance shareholder value and maintain ongoing investments and structural upgrades to increase corporate value."

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