11st, 3Q Operating Loss Improved 55% YoY... Open Market Profitable for 8 Consecutive Months

Cumulative Operating Loss This Year Also Down 2.4% Compared to Last Year

11st Street reduced its operating loss in the third quarter of this year by more than half compared to the same period last year. In its core business, the open market sector, it succeeded in achieving operating profit for eight consecutive months (March to October) until last month.

According to the quarterly report and IR materials of SK Square, the parent company of 11st Street, on the 15th, the operating loss of 11st Street in the third quarter of this year was recorded at 14.6 billion KRW. This is a 55% improvement compared to the same period last year. Additionally, it succeeded in reducing operating losses compared to the previous year for six consecutive quarters.

11st CI. Provided by 11st

The net loss for the third quarter was 14.2 billion KRW, a 58.6% decrease compared to the same period last year. Third-quarter sales recorded 122 billion KRW. The cumulative operating loss for the first to third quarters of this year was 52.4 billion KRW, which is 2.4% lower than the same period last year.

11st Street explained that this was the result of expanding performance improvement centered on the open market sector under a profitability-first management policy. They also added that efforts to reduce costs, such as marketing efficiency and office relocation, were factors contributing to the performance improvement.

In the core open market sector, due to the growth of vertical services and specialized specialty stores, as well as the expansion of club-type membership customers, operating profit continued for eight consecutive months from March to October this year. In the retail sector, they contributed to performance improvement by accelerating business restructuring, such as optimizing direct purchase product operations and strengthening fulfillment services to generate new revenue.

11st Street plans to continue expanding profitability-centered management performance in the fourth quarter and maintain the performance trend by continuously promoting operational efficiency. In addition, they plan to continue efforts to advance the platform for shopping convenience, following the launch of AI-integrated customer services such as 'Ai Feed', and improvements to the home tab user interface (UI) and user experience (UX).

Jeon Eun, president of 11st Street, said, "Through continuous structural improvement, we are achieving the goal of strengthening profitability and creating new opportunities by presenting differentiated services that reflect changing customer trends and needs." He added, "We will focus the entire company's capabilities to ensure that the performance improvement trend continues in the remaining fourth quarter."