Lotte Shopping(023530) said on the 7th that second-quarter operating profit this year jumped 121.2% from a year earlier to 89.9 billion won. During the same period, revenue rose 4% to 3.485 trillion won, and net profit swung to a profit of 14.6 billion won.
The department store division led earnings growth. Revenue from foreign tourists visiting Korea increased, and sales were strong across all product categories centered on fashion, driving steady growth in both domestic department stores and overseas operations.
Second-quarter revenue at the department store division rose 9.2% on-year to 891.2 billion won. This is the largest ever for a second quarter. Revenue recovery at discount stores and major subsidiaries also continued.
Second-quarter operating profit at the department store division totaled 119.7 billion won. Operating profit at domestic department stores increased 77.6% from a year earlier, and operating profit at overseas department stores, led by Lotte Mall Westlake Hanoi, also surged 309.7%.
Home shopping improved profitability by reorganizing its product mix around high-margin items and streamlining selling and administrative expenses. Structural improvements and expense efficiencies at major subsidiaries also contributed to companywide results.
Lotte Shopping's cumulative revenue for the first half of this year was 7.0666 trillion won, up 3.8% from a year earlier, and operating profit climbed 81.5% to 342.8 billion won. Net profit was 158.5 billion won, up 1,932.9%.
During the same period, the department store business saw domestic revenue and operating profit rise 8.4% and 54.8%, respectively, while overseas department stores posted increases of 17.6% and 287.8%, respectively.