Shinsegae Reports Operating Profit of 645.4 Billion KRW Last Year, Up 24.7% YoY (Comprehensive)

Shinsegae announced on the 8th that its consolidated operating profit for last year was tentatively estimated at 645.4 billion KRW, a 24.7% increase compared to the previous year. Sales rose 23.7% year-on-year to 7.8128 trillion KRW. Net profit increased by 29.9% to 505 billion KRW.

Operating profit for the fourth quarter was 141.3 billion KRW, down 27.6% from the same period last year. Sales and net profit were 2.214 trillion KRW and 177.2 billion KRW, respectively. The department store business recorded sales of 668.6 billion KRW and operating profit of 149.9 billion KRW. Shinsegae showcased differentiated content both online and offline, including ▲ the industry's largest sports and women's fashion specialty hall (Centum City branch) ▲ SSG.com Shinsegae Department Store Mall's emerging designer brand hall targeting the MZ generation (Millennials + Generation Z) ▲ the industry's first Poovilla non-fungible token (NFT) holder party. Additionally, the recovery in demand for fashion categories such as men's, women's, and casual wear (12.3%), cosmetics (12%), and travel-related genres like luggage (82.8%) due to the resumption of overseas travel and the return to daily life also contributed to the department store's performance.

Shinsegae plans to accelerate future-oriented digital transformation this year by enhancing offline competitiveness with the industry's largest young fashion specialty hall (Centum City branch), a high-end golf specialty hall (Gangnam branch), and revamping the gift service on SSG.com Shinsegae Department Store Mall in the first half of the year.

Consolidated subsidiaries such as Shinsegae International and Central City continued their growth momentum. Shinsegae International recorded sales of 430.3 billion KRW in the fourth quarter. Sales and profitability in the domestic fashion sector, including BOB, JIGGUT, and Studio Tomboy, improved significantly, while the JAJU division and in-house cosmetics brands continued to expand their volume.

Shinsegae DF posted fourth-quarter sales of 996.7 billion KRW; however, operating profit decreased to -26.3 billion KRW compared to last year due to the early reflection of Incheon Airport rent and patent fees scheduled for payment in the first half of the year. Shinsegae Central City recorded sales of 89.1 billion KRW and operating profit of 18.9 billion KRW, driven by increased rental income from higher department store sales and hotel revenue. Shinsegae Live Shopping achieved sales of 68.9 billion KRW and operating profit of 2.6 billion KRW, while Shinsegae Casa saw sales decline by 17.9% to 59.2 billion KRW due to external factors such as the downturn in the construction and real estate markets.

A Shinsegae official stated, “Despite challenging market conditions, we achieved record-high performance last year through continuous online and offline investments and the development and nurturing of in-house brands. We will continue to strengthen our fundamentals by presenting a new distribution paradigm across online and offline channels and enhancing our core business competitiveness.”