Shinsegae, led by Chairman Jung Yoo-kyung, posted a profit in the 160 billion won range for the third quarter of this year, achieving its highest-ever operating results on a quarterly basis.
Shinsegae disclosed on the 10th that its consolidated results for the third quarter of this year were provisionally tallied at total revenue of 2.9043 trillion won and an operating profit of 164.3 billion won.
Revenue increased by 3.2% and operating profit rose by 64.6%, respectively, compared to the same period last year. The operating profit is the largest ever recorded for a third quarter.
The department store business saw simultaneous growth in both scale and profit. Revenue reached 1.8565 trillion won, an 8.5% increase from the third quarter of last year, while operating profit rose by 23.5% to 103.7 billion won.
Major stores such as the Myeong-dong Main Store (44%), Gangnam branch (17%), and Centum City branch (14%) all achieved double-digit sales growth rates simultaneously.
With recent heightened interest in K-content and K-shopping, foreign customers have increased significantly, centered on major stores. Shinsegae Department Store's foreigner sales for the first three quarters of this year reached 850 billion won, more than doubling compared to the same period last year.
If this trend continues, foreigner sales alone are projected to surpass 1 trillion won for the first time. Shinsegae Department Store plans to sustain its growth momentum by strengthening its luxury goods lineup and attracting differentiated F&B (food and beverage) brands.
Consolidated subsidiaries also achieved solid results. Shinsegae Duty Free, which operates the duty-free business, recorded Q3 revenue of 451.1 billion won and an operating profit of 25.3 billion won.
Although revenue decreased by 16.3% compared to the third quarter last year due to the return of the Incheon Airport branch business rights, management efficiency efforts proved effective, resulting in a turn to profitability in operating profit.
Through specialized services linked with related parties such as department stores, membership numbers increased by 27% and average spending per customer rose by 15% compared to the previous year.
Real estate developer Shinsegae Central recorded Q3 revenue of 107.2 billion won and an operating profit of 31.2 billion won. Driven by steady growth in its existing leasing business and strong performance in the hotel sector, it achieved its first quarterly operating profit in the 30 billion won range since being included in Shinsegae Co., Ltd. in 2012.
Shinsegae International, which operates apparel and fashion businesses, recorded Q3 revenue of 299.5 billion won and an operating profit of 5.1 billion won.
Revenue increased by 16.6% compared to the same period last year, and operating profit turned profitable. The fashion segment grew by 17.3% from the third quarter last year as overseas fashion brands such as UGG gained popularity. The cosmetics segment led performance improvement with double-digit sales growth recorded by brands including Yeonjak and B.Duc.
Home shopping operator Shinsegae Live Shopping recorded Q3 revenue of 84.8 billion won and an operating profit of 3.2 billion won. It showed a trend of performance improvement as differentiated products, including its own fashion brand Bluefit, gained popularity.
Shinsegae Casa, which sells lifestyle goods such as furniture, recorded revenue of 118.2 billion won, an 85% increase from the third quarter last year. This was the result of increased sales for its specialized brand JAJU and the expansion of product lines for popular brands such as Campo.
A company official said, "We achieved our highest-ever Q3 operating profit through continued strengthening of our core department store competitiveness and management quality improvement efforts at our subsidiaries," adding, "We will continue investments for the future and create a super-gap momentum through business specialization by company."
Meanwhile, Shinsegae is strengthening its shareholder return policy starting from the third quarter of this year. The company plans to expand quarterly dividend amounts to twice the previous level while simultaneously carrying out share buybacks and cancellations.
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