Shinsegae has achieved its highest-ever third-quarter operating profit, driven by strong performance in its department store business and improved profitability in key subsidiaries. The increase in foreign tourists and enhanced competitiveness of core stores contributed to the department store's success, while the efficiency gains from subsidiaries began to materialize.
On November 10, Shinsegae announced that its consolidated operating profit for the third quarter reached 164.3 billion won, a 64.6% increase compared to the same period last year. This marks the highest operating profit recorded for any third quarter. Total revenue rose by 3.2% to 2.9 trillion won.
The department store segment led the performance improvement. Combined sales from separate entities in Gwangju, Daegu, and Daejeon increased by 8.5% to 1.8565 trillion won. Operating profit for this segment grew by 23.5% to 103.7 billion won.
Notable growth was seen in major stores. Sales at the flagship store increased by 44% year-on-year, while the Gangnam store saw a 17% rise and the Centum City store experienced a 14% increase. This growth is attributed to the strengthening of luxury and contemporary brands, as well as the expansion of differentiated content such as food and beverage offerings and pop-up stores, which attracted more customers.
The increase in foreign sales also supported the overall performance. From January to September this year, foreign sales at Shinsegae Department Store reached 850 billion won, more than double the amount from the same period last year, marking the highest level ever. Purchases by foreign customers expanded significantly at key locations, including the flagship store, Gangnam, and Centum City.
Shinsegae DF, which operates duty-free shops, significantly improved its profitability despite a decline in sales. Third-quarter revenue fell by 16.3% to 451.1 billion won, but operating profit turned positive at 25.3 billion won, an improvement of 30.9 billion won compared to the same period last year, representing the highest operating profit for any third quarter.
Shinsegae DF is shifting its business strategy from price competition to enhancing customer experience and service differentiation. As a result of strengthening VIP services linked to department stores and premium airport pickups, the cumulative number of members increased by 27% in the third quarter, and the average spending per customer rose by 15% compared to the previous year.
Shinsegae International also returned to profitability. Third-quarter revenue increased by 16.6% to 299.5 billion won, with operating profit reaching 5.1 billion won, an improvement of 9.4 billion won year-on-year. Strong sales of overseas fashion brands, growth in its own cosmetics brand, and improved efficiency in domestic fashion operations contributed to this success.
Shinsegae Central reported revenue of 107.2 billion won and operating profit of 31.2 billion won, marking a 13% increase in operating profit and surpassing 30 billion won for the first time in the third quarter since its incorporation into Shinsegae in 2012. Growth in the hotel business and stable rental income supported these results.
Shinsegae Casa achieved revenue of 118.2 billion won, an 85% increase, and returned to profitability with an operating profit of 900 million won. The integration of its portfolio with the JAJU business and the expansion of its furniture brand 'Campo' contributed to this growth. Shinsegae Live Shopping recorded revenue of 84.8 billion won and an operating profit of 3.2 billion won, a 33.3% increase.
In line with its improved performance, Shinsegae plans to enhance shareholder returns. The quarterly dividend for the third quarter will be doubled compared to previous levels, and the company will also proceed with stock buybacks.
A Shinsegae official stated, "The competitiveness of our department store business and the improved management of our subsidiaries have led to record operating profit for the third quarter. We will continue to invest for the future while creating a momentum for specialization in each business unit."
On November 10, Shinsegae announced that its consolidated operating profit for the third quarter reached 164.3 billion won, a 64.6% increase compared to the same period last year. This marks the highest operating profit recorded for any third quarter. Total revenue rose by 3.2% to 2.9 trillion won.
The department store segment led the performance improvement. Combined sales from separate entities in Gwangju, Daegu, and Daejeon increased by 8.5% to 1.8565 trillion won. Operating profit for this segment grew by 23.5% to 103.7 billion won.
Notable growth was seen in major stores. Sales at the flagship store increased by 44% year-on-year, while the Gangnam store saw a 17% rise and the Centum City store experienced a 14% increase. This growth is attributed to the strengthening of luxury and contemporary brands, as well as the expansion of differentiated content such as food and beverage offerings and pop-up stores, which attracted more customers.
The increase in foreign sales also supported the overall performance. From January to September this year, foreign sales at Shinsegae Department Store reached 850 billion won, more than double the amount from the same period last year, marking the highest level ever. Purchases by foreign customers expanded significantly at key locations, including the flagship store, Gangnam, and Centum City.
Shinsegae DF, which operates duty-free shops, significantly improved its profitability despite a decline in sales. Third-quarter revenue fell by 16.3% to 451.1 billion won, but operating profit turned positive at 25.3 billion won, an improvement of 30.9 billion won compared to the same period last year, representing the highest operating profit for any third quarter.
Shinsegae DF is shifting its business strategy from price competition to enhancing customer experience and service differentiation. As a result of strengthening VIP services linked to department stores and premium airport pickups, the cumulative number of members increased by 27% in the third quarter, and the average spending per customer rose by 15% compared to the previous year.
Shinsegae International also returned to profitability. Third-quarter revenue increased by 16.6% to 299.5 billion won, with operating profit reaching 5.1 billion won, an improvement of 9.4 billion won year-on-year. Strong sales of overseas fashion brands, growth in its own cosmetics brand, and improved efficiency in domestic fashion operations contributed to this success.
Shinsegae Central reported revenue of 107.2 billion won and operating profit of 31.2 billion won, marking a 13% increase in operating profit and surpassing 30 billion won for the first time in the third quarter since its incorporation into Shinsegae in 2012. Growth in the hotel business and stable rental income supported these results.
Shinsegae Casa achieved revenue of 118.2 billion won, an 85% increase, and returned to profitability with an operating profit of 900 million won. The integration of its portfolio with the JAJU business and the expansion of its furniture brand 'Campo' contributed to this growth. Shinsegae Live Shopping recorded revenue of 84.8 billion won and an operating profit of 3.2 billion won, a 33.3% increase.
In line with its improved performance, Shinsegae plans to enhance shareholder returns. The quarterly dividend for the third quarter will be doubled compared to previous levels, and the company will also proceed with stock buybacks.
A Shinsegae official stated, "The competitiveness of our department store business and the improved management of our subsidiaries have led to record operating profit for the third quarter. We will continue to invest for the future while creating a momentum for specialization in each business unit."
* This article has been translated by AI.
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