LOTTE SHOPPING CO., LTD. announced on the 7th that its consolidated operating profit for the second quarter of this year reached 89.9 billion won, a 121.2% increase compared to the same period last year. During the same period, revenue rose 4.0% to 3.485 trillion won, and net income turned to a profit of 14.6 billion won.
The department store business drove second-quarter revenue. The department store division recorded revenue of 891.2 billion won, a 9.2% increase from the same period last year, marking the highest second-quarter revenue in the company’s history.
Analysts attribute this to a combination of rising sales from foreign tourists, strong sales across all product categories—particularly in fashion—and the growth of both domestic department stores and overseas operations.
Operating profit was also led by the department store segment. Operating profit for domestic department stores rose 77.6% year-over-year, while that for overseas department stores surged 309.7%. Consequently, the department store division’s operating profit reached 119.7 billion won, driving the company-wide improvement in performance. In particular, Lotte Mall West Lake Hanoi in Vietnam continued its growth momentum overseas by setting a new record for operating profit for the sixth consecutive quarter.
In addition to department stores, the home shopping division improved profitability by restructuring its portfolio to focus on high-margin products and streamlining selling, general, and administrative expenses, while major subsidiaries also contributed to the improved performance through structural reforms.
On a cumulative basis for the first half of the year, revenue reached 7.0666 trillion won, a 3.8% increase compared to the same period last year, while operating profit rose 81.5% to 342.8 billion won. Net income also improved significantly, reaching 158.5 billion won.
Lim Jae-cheol, Head of Finance at LOTTE SHOPPING CO., LTD., stated, “The combination of solid performance at our domestic and international department stores and company-wide efforts to improve profitability led to a meaningful rebound in earnings for both the second quarter and the first half of the year.” He added, “We will continue to maintain a stable growth trajectory by strengthening the fundamental competitiveness of our core businesses and pursuing ongoing structural improvements.”
