Shinsegae International improved profitability on the back of tandem growth in its fashion and beauty (cosmetics) businesses.
Shinsegae International said on the 12th that first-quarter operating profit rose 452.6% from a year earlier to 14.8 billion won. Sales for the same period came to 295.6 billion won, up 15.7%.
The company said the results stemmed from a combination of strong performance by imported brands, a recovery in the competitiveness of its own brands, and structural benefits from global expansion. The cosmetics segment also continued to grow.
In the fashion segment, sales of imported fashion rose 35.2% from a year earlier. Key brands including Brunello Cucinelli, Rick Owens, UGG, and Herno drove top-line growth.
Among the company's own brands, Studio Tomboy, ILAI, and MAN ON THE BOON improved performance on recovering consumer sentiment, seasonal demand, and rebranding effects.
Cosmetics segment sales reached 124 billion won, the largest ever. That is 7.3% higher than the previous record set in the second quarter of last year.
Earlier, cosmetics segment sales rose 9.7% year over year despite a consumer downturn last year, reaching a record 455 billion won. Last year, for the first time since launching the beauty business, the company posted more than 110 billion won in sales every quarter.
Sales in the imported cosmetics segment rose 20% on stronger demand for niche fragrances and luxury beauty. In-house brands such as AMUSE, VIDIVICI, and YEONJAK also sustained growth, backed by overseas market expansion.
A Shinsegae International official said, "The simultaneous growth of our core businesses and the effects of business structure improvements are together putting our performance improvement on a firm track," adding, "We will enhance both growth and revenue by strengthening brand competitiveness and expanding in global markets."