[Edaily Reporter KYUNG GYEYOUNG ] SHINSEGAE INTERNATIONAL returned to profitability in the second quarter, driven by strong performance in its cosmetics division—which set a record for highest-ever sales—and its fashion division, which focuses on premium brands.

SHINSEGAE INTERNATIONAL(031430)The company announced on the 11th that its consolidated operating profit for the second quarter was 7 billion won, marking a return to profitability compared to the same period last year. During the same period, revenue rose 15.1% to 291.6 billion won, and net income surged 12,680.5% to 6.8 billion won, according to preliminary figures.

Although the second quarter is typically considered the off-season for the fashion and beauty industries, SHINSEGAE INTERNATIONAL benefited from a recovery in consumer sentiment and the continued trend of “K-shaped consumption,” characterized by strong demand for premium goods. This allowed its high-end imported fashion and beauty businesses to grow steadily. The increase in foreign tourists visiting South Korea also served as a positive factor.

SHINSEGAE INTERNATIONAL attributed the improvement in both revenue and profitability to these factors, combined with the effects of strengthening the competitiveness of its in-house brands and focusing on profitability-driven management.

Growth in the cosmetics business was particularly notable. Riding the K-Beauty wave, the cosmetics division’s sales reached 129.5 billion won, setting a new record for quarterly sales. BDBIC and Yeonjak expanded their markets globally, each growing by more than 50% year-over-year, while the hair care brand Just As IM CO., LTD. also expanded its distribution network into markets such as China, resulting in a 207% increase in sales over the same period. However, Amuse posted a loss of 600 million won. SHINSEGAE INTERNATIONAL explained that this was due to a concentration of proactive investments for future growth—including the expansion of its global distribution network to 27 countries, brand investments, and the restructuring of its business portfolio related to the acquisition of D’Awsome’s assets—and stated that profitability is expected to improve in the second half of the year.

In the imported cosmetics segment, sales rose 18.5% compared to the second quarter of last year. As demand for niche perfumes and luxury beauty products continued, most imported brands—including Diptyque, Laura Mercier, Hourglass, La Bourquette, Loewe Parfums, and Dolce & Gabbana Beauty—posted double-digit sales growth rates.

The imported fashion segment served as a key growth driver, with sales increasing by 31.8% compared to the same period last year. Major brands such as Brunello Cucinelli, UGG, Rick Owens, and Erno grew steadily, while newly introduced brands like Enfant Riche Déprimé, Buori, and Courrèges nearly doubled their sales during the same period.

Looking at the individual fashion brands operated by SHINSEGAE INTERNATIONAL, Harley-Davidson Collections and Ilail saw sales increase by 70% and 34%, respectively, compared to the same period last year. The overseas expansion of its in-house fashion brands is also gaining momentum, with Studio Tom Boy and Bob opening their first overseas stores in Singapore last month and Man on the Bun signing a wholesale agreement with a global distributor.

A SHINSEGAE INTERNATIONAL official stated, “Despite the seasonal off-peak period, our core fashion and beauty businesses grew steadily, continuing the trend of improved performance,” adding, “We plan to strengthen the foundation for stable growth by maintaining a profitability-focused management approach while continuing to enhance brand competitiveness and expand our global operations.”