South Korea’s retail giant Shinsegae Inc. reported its operating profit in the second quarter almost doubled from a year ago on solid growth across the board, in particular cosmetics and duty-free businesses.
Shinsegae in a regulatory filing on Wednesday said its consolidated operating profit for the April-June period reached 79.8 billion won ($71.2 million), up 93.1 percent from a year ago. Net profit rose 10.8 percent on year to 52.1 billion won, and sales jumped 34.9 percent to 1.18 trillion won over the cited period.
On Thursday, shares of Shinsegae fell 3.43 percent to close the day at 310,000 won.
For the full first six-month period, the company raked in an operating profit of 193 billion won, up 62.3 percent from the previous year. Net income surged 68.6 percent to 136.3 billion won, while sales totaled 2.28 trillion won, up 27 percent on year.
By unit, its department store business saw operating profit gain 15.9 percent to 42.0 billion won on sales of 413.7 billion won, up 3.4 percent from a year-ago period thanks to newly opened stores in Hanam, Gimhae, and Daegu and facility expansion in Gangnam and Busan stores.
Its duty-free business also swung to an operating profit of 22.6 billion won over the same period on revenue of 444.6 billion won, up 132.2 percent. Its profit is expected to stretch more as it has recently opened a new duty-free store in downtown Seoul and succeeded in winning licenses to run more duty-free locations at Incheon International Airport, the country’s main gateway.
Shinsegae International, the retail group’s fashion and cosmetics division, also fared well with its operating profit in the second quarter soaring 222.1 percent on year to 14.3 billion won. Its sales rose 18.3 percent to 283.4 billion won. The profit surge in the division was driven by brisk sales of its cosmetics brand VIDI VICI and imported brand Diptyque, according to the company.
Furniture and home décor unit Casamia that Shinsegae acquired early this year delivered an operating profit of 2.7 billion won on sales of 31.1 billion won during the same period.
By Lee Han-na and Lee Ha-yeon
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