LOTTE HIMART reported sales of 2.3567 trillion won and an operating profit of 1.7 billion won for the previous year, according to a public disclosure on the 5th. This marks a decrease of 9.7% and 79.1%, respectively, compared to the previous year.
Sales for the fourth quarter of the previous year amounted to 556.4 billion won, representing a 3.8% decrease compared to the same period a year earlier. The company also recorded an operating loss of 16.3 billion won. A LOTTE HIMART official noted, "The operating loss was due to an expense of about 10.2 billion won resulting from a change in the standard for regular wages," adding, "If there had been no one-time expenses, the operating profit would have been higher than the previous year."
The net loss for the previous year was 307.5 billion won annually and 316.2 billion won for the fourth quarter. This reflects an impairment of goodwill of 265.5 billion won, due to the slowdown in growth in the home appliance market.
A LOTTE HIMART official emphasized that while sales were sluggish in the first half, they have been improving since the second half. He noted that the inability to overcome prolonged domestic sluggishness, the growth of premium and wedding appliances in department stores, and the expansion of subscription services by appliance manufacturers were major challenges. However, he stated that sales increased as they improved the workforce structure in the second half.
An official from LOTTE HIMART stated, "The limitations of proactive sales activities due to a dual workforce structure of direct employees and promotional staff have been overcome," adding, "Improving the workforce structure by hiring more than 1,300 promotional staff through public recruitment in July of the previous year was a turning point for recovery." He further noted, "Sales at existing stores have shifted to an increasing trend since the fourth quarter, and e-commerce has also begun to see growth driven by direct purchases in our own mall since the second half."