Shinsegae Department Store Hits Record First-Half Profit Driven by Luxury Sales and Tourists

Shinsegae Department Store has reported its highest-ever first-half operating profit, reaching 365 billion won. This landmark achievement was propelled by a robust performance in luxury goods sales and a significant increase in spending by international visitors.

The company's second-quarter results, announced on August 11, surpassed market forecasts. Shinsegae posted a consolidated operating profit of 167.1 billion won for the second quarter, a remarkable 121.9% increase compared to the same period last year. Total revenue for the quarter rose by 8.5% year-on-year to 3.1414 trillion won.

For the first half of the year, revenue climbed 10.1% to 6.3558 trillion won, while operating profit surged 75.7% to 365 billion won. Both figures represent the highest on record for the first half of a year. The department store division was a key driver of this growth, with total sales increasing by 15.5% in the second quarter to 2.017 trillion won, and operating profit jumping 53.5% to 108.8 billion won.

Luxury goods sales within the department store segment saw a substantial 35% increase in the first half, leading the growth. Other categories like living goods (16.6%), food (13.7%), and fashion (10.1%) also showed steady growth. The rise in spending by foreign tourists further boosted the company's performance.