Shinsegae Reports Record Half-Year Operating Profit Driven by Luxury Goods and Foreign Customers

Shinsegae has reported its highest-ever operating profit for the first half of the year, bolstered by strong performance in its department store business. Sales of luxury goods and fashion, along with a significant increase in revenue from foreign customers, contributed to this improvement.

On August 11, Shinsegae announced that its consolidated total revenue for the second quarter reached 3.1414 trillion won, an 8.5% increase compared to the same period last year. Operating profit for the quarter was 167.1 billion won, marking a 121.9% rise.

For the first half of the year, cumulative operating profit stood at 365 billion won, a 75.7% increase from the same period last year. This figure surpasses the previous record of 351 billion won set in 2022.

The improvement in performance was primarily driven by the department store sector. In the second quarter, total revenue from department stores rose to 2.017 trillion won, a 15.5% increase, while operating profit grew by 53.5% to 108.8 billion won.

By product category, luxury goods sales surged by 35%, while living goods increased by 16.6%, food by 13.7%, and fashion by 10.1%, indicating broad-based growth across key sectors. Shinsegae attributed this success to strategic investments made at its flagship and Gangnam stores, which have led to increased sales and improved profitability.

The influx of new customers was also notable. In the first half of the year, new customers accounted for 27.7% of Shinsegae Department Store's clientele, with those under 30 making up 45% of that group.

Revenue from foreign customers also saw a sharp increase. In the first half, foreign sales at Shinsegae Department Store reached 580 billion won, a 120% rise compared to the same period last year. Analysts suggest that the enhanced store content strategies, including the 'House of Shinsegae Cheongdam' launched last year and the new women's fashion specialty store in Daegu, as well as the South City sports specialty store, have contributed to attracting more customers.