Lotte Shopping's Q2 operating profit soars 121.2% on department store recovery

Lotte Shopping's department store division has driven a significant turnaround in the company's second-quarter financial performance. The division's sales surged 9.2% year-on-year to a record 891.2 billion won, boosted by increased spending from foreign tourists and robust sales across all product categories, particularly fashion.

This strong performance translated into a substantial increase in operating profit for the department store segment, which rose 84% compared to the same period last year, reaching 119.7 billion won. Both domestic and international department store operations saw significant gains, with the Lotte Mall West Lake Hanoi in Vietnam achieving its highest quarterly operating profit for six consecutive quarters.

The company's other divisions also showed improvement. The마트 (mart) division's sales increased by 2.6% to 1.33 trillion won, while its operating loss narrowed to 37.8 billion won, attributed to sales recovery despite one-time costs from voluntary retirement programs. The e-commerce division improved its operating profit by 1 billion won, driven by a restructured business model focused on fashion and beauty, and increased advertising revenue. The home shopping segment also saw a 62.7% rise in operating profit due to a higher proportion of high-margin products like health foods and beauty items, coupled with cost efficiencies.

Looking ahead, Lotte Shopping aims to sustain its growth momentum in the second half of the year. The company will focus on advancing its "town strategy" centered on its main department stores in Myeongdong and Jamsil, and developing the Incheon store as its third Lotte Town. "The solid performance of domestic and international department stores, combined with company-wide efforts to improve profitability, has resulted in a meaningful turnaround in both the second quarter and the first half," said Im Jae-cheol, head of Lotte Shopping's finance division.

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The solid performance of domestic and international department stores, combined with company-wide efforts to improve profitability, has resulted in a meaningful turnaround in both the second quarter and the first half.