"Rising Prices and Cost Increases" Shinsegae Reports 131.8 Billion KRW Operating Profit in 3Q... Down 13.9%

'Yeokgijeo' 100, Continuous Space Innovation and Content Differentiation
Performance Improvement of DF, Shinsegae Casa, Central City, etc.

Shinsegae announced on the 8th that its consolidated operating profit for the third quarter of this year was 131.8 billion KRW, a 13.9% decrease compared to the same period last year. During the same period, sales amounted to 1.4975 trillion KRW, down 23.4%.

Shinsegae Department Store Gangnam Branch [Photo by Shinsegae].

With high interest rates persisting, the stock and real estate markets have stagnated, and disposable income has also decreased, leading to weakened consumer sentiment. Although department stores, which recorded strong performance last year, faced significant pressure, they maintained a scale similar to last year. Consolidated companies such as Shinsegae DF (duty-free shop), Central City, and Shinsegae Casa achieved performance improvements.

The department store's third-quarter operating profit recorded 92.8 billion KRW, down 15.1% from the same period last year (including separate corporations in Gwangju·Daegu·Daejeon Shinsegae). The increase in management and promotional expenses linked to inflation had an impact. Sales amounted to 604.3 billion KRW, a 0.9% decrease compared to the same period last year. For the cumulative total this year, sales reached 1.8536 trillion KRW (1.9%), continuing the growth trend.

Shinsegae Department Store stated, "In the third quarter of this year, we demonstrated competitiveness through offline space innovation and content differentiation, such as the renewal opening of 'New Street,' a young fashion specialty hall at the Gangnam branch, renovation of the children's, golf, and cinema sections at the Gyeonggi branch, and participation in the world-renowned art fair 'Frieze Seoul.' We will continue to strengthen the online gift service 'Shinbaek Gift Hall' until the end of the year and focus our efforts on expanding online and offline synergy by renewing the department store mobile application (app)."

Shinsegae DF's operating profit for the third quarter was 13.3 billion KRW, an increase of 160.8% compared to the same period last year, while sales decreased by 49.1% to 436.1 billion KRW. Shinsegae Central City also achieved sales of 94.2 billion KRW (+10.3%) and operating profit of 24.9 billion KRW (+10.2%), supported by increased hotel occupancy rates and rental store performance.