Lotte Shopping said in a filing on the 7th that preliminary third-quarter results came to 341.01 billion won in revenue and 130.5 billion won in operating profit. Compared with a year earlier, revenue fell 4.4% and operating profit decreased 15.8%.
Net loss for the period was 48.7 billion won, swinging to a loss.
Lotte Shopping said, "In the third quarter, we continued a solid improvement trend at department stores and posted steady growth in overseas business, but consolidation operating profit decreased due to a challenging operating environment in the grocery business and the reverse base effect from last year's one-off gains at Himart. Net profit swung to a loss due to a one-off impairment recognized on investment property."
In the third quarter, the department store institutional sector posted 191.84 billion won in revenue and 79.6 billion won in operating profit. Revenue rose 0.7% and operating profit increased 9% from a year earlier.
Domestic department stores saw growth in both revenue and operating profit, led by strong sales at large stores such as the main branch and Jamsil. Fashion sales were strong in the third quarter, driving overall results, and sales to foreign customers also rose sharply thanks to an increase in foreign tourists, contributing to growth. In particular, at the main branch, foreign-customer sales in the third quarter rose 39% from a year earlier, and their share increased to 19%.
The grocery (discount store) institutional sector recorded 144.69 billion won in revenue and 7.1 billion won in operating profit. Revenue fell 8.8% and operating profit dropped 85.1% from a year earlier. Revenue and operating profit declined due to a challenging operating environment, including the timing difference of the Chuseok holiday and the exclusion of certain outlets from consumer coupon use.
Overseas business posted 37.44 billion won in revenue and 12.9 billion won in operating profit. Revenue rose 0.4% and operating profit increased 69.7% from a year earlier. Lotte Mall West Lake Hanoi saw total sales grow 28.6% and, since opening in 2023, achieved its largest quarterly profit, leading the business in Vietnam. For overseas hypermarkets, sales at the Bali store in Indonesia rose sharply after it was renewed into a hybrid store that combines wholesale and retail space.
The e-commerce institutional sector recorded 22.6 billion won in revenue and an operating loss of 9.6 billion won. Although revenue declined due to portfolio adjustments, the operating loss was cut by more than half through improved gross margin and operational efficiency. Over the past six quarters, e-commerce has reduced quarterly losses year over year and has steadily maintained an improving operating profit trend.
Lotte Shopping plans to focus on customer traffic and sales activities during the fourth-quarter holiday peak to target profit growth. At department stores, following the Sept. opening of the K-fashion specialty zone "Kinetic Ground" at the Jamsil store, major MD renewal openings are scheduled at large stores such as the main branch and Incheon branch. Starting on the 20th of this month, the Jamsil Lotte Town Christmas Market, which has become a go-to spot for Christmas photo ops, will be unveiled with diverse content to draw customers.
For marts and supermarkets, the goal is to strengthen core grocery competitiveness centered on fresh food and PB, and focus capabilities on the e-grocery business that is preparing to go fully operational next year. In overseas business, the company plans to continue strengthening the competitiveness of Lotte Mall West Lake Hanoi to accelerate profit expansion, and to accelerate the shift of overseas hypermarkets into grocery specialty stores centered on K-food to pursue improved profitability and a stronger foundation for growth.