(Shinsegae Inc.) achieved its highest-ever performance in the first half of this year. This result stems from strong performance across major subsidiaries, including its core department store business, duty-free shops, and fashion & beauty sectors. The company's management strategy, which focused on proactive investments centered on large-scale stores and differentiated content, is being credited as highly effective.
(Shinsegae Inc.) announced on the 11th that its consolidated results for the second quarter of this year were preliminarily recorded at total sales of 3.1414 trillion won and an operating profit of 167.1 billion won. Sales increased by 8.5% and operating profit surged by 121.9% compared to the same period last year, surpassing market forecasts.
Cumulative results for the first half totaled total sales of 6.3558 trillion won and an operating profit of 365 billion won, representing a 10.1% increase in sales and a 75.7% increase in operating profit compared to the same period last year. Both sales and operating profit reached record highs for any first half on record.
The department store business recorded total sales of 2.0217 trillion won and an operating profit of 108.8 billion won for the second quarter. Compared to the second quarter of last year, sales increased by 15.5% and operating profit rose by 53.5%.
Strategic investments centered on large-scale stores, including the Myeong-dong Main Store and Gangnam Store, yielded results. Both locations achieved double-digit or higher sales growth rates in the first half of this year. They drove balanced growth across major product categories: luxury goods (35%), fashion (10.1%), living (16.6%), and food (13.7%).
Space innovation through large-scale investments and a differentiated content strategy attracted a significant influx of new customers. In the first half of this year, the proportion of new customers at Shinsegae Department Store reached 27.7%, with those aged 30 or younger accounting for 45% of that group. Regarding this, a Shinsegae Department Store official explained, "As a result of attracting young customers and new domestic and foreign visitors through highly talked-about content that sparks 'open runs' and trendy renovations."
The growth trend among foreign customers continued. Foreign sales in the first half of this year reached 580 billion won, a 120% increase compared to the previous year. If this trend continues, foreign sales are likely to exceed 1 trillion won this year. The company has established itself as a 'K-Shopping Landmark' recognized by overseas customers.
Consolidated subsidiary results also showed strong performance. Shinsegae International recorded sales of 291.6 billion won and an operating profit of 7 billion won for the second quarter. Sales increased by 15.1% year-on-year, and operating profit turned profitable. Notably, cosmetics sector sales reached a record quarterly high of 129.5 billion won. Despite being the off-season, it recorded balanced growth driven by the popularity of K-beauty and K-fashion.
The duty-free business (Shinsegae DF) recorded sales of 542.6 billion won for the second quarter, a 10.3% decrease compared to the same period last year, but operating profit turned from a 1.5 billion won loss to a 33.3 billion won profit. Profitability improved after returning the Incheon Airport DF2 business rights, which carried high rental costs. Meanwhile, at downtown duty-free shops (Myeong-dong Store), sales surged significantly due to an increase in overseas tourists from Thailand (273%), Australia (184%), Canada (93%), and the United States (22%).
Shinsegae Central recorded second-quarter sales of 108.7 billion won and an operating profit of 14.9 billion won. Shinsegae Casa's results were sales of 119.2 billion won and an operating profit of 2.4 billion won. Shinsegae Casa, which acquired the 'JAJU' brand business, saw its first-half sales and operating profit grow more than double compared to the previous year.
Shinsegae Live Shopping recorded second-quarter sales of 86.8 billion won and an operating profit of 5.2 billion won. Cumulative results for the first half (sales of 176.6 billion won, operating profit of 12.6 billion won) reached their highest level since being consolidated into Shinsegae Inc.
A Shinsegae Inc. official stated, "Strategic investments to create future customers and active improvements in management structure bore fruit as profitable operations across all businesses in the first half." They added, "We will continue our efforts to improve management efficiency and specialization in the second half to create a super-competitive momentum that leads the industry."
Meanwhile, Shinsegae will implement quarterly dividends for the second quarter of this year to enhance shareholder value. The dividend record date is set for the 31st, with a payment of 1,300 won per common share.
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