SEOUL - Shinsegae Inc. announced a significant drop in its net profit for the second quarter, despite a slight rise in sales. The company's net income fell to 58.1 billion won (US$42.2 million), marking a 26.2 percent decrease from the previous year.
According to Yonhap News Agency, Shinsegae also saw a decline in operating profit, down from 149.6 billion won a year earlier to 117.5 billion won this quarter. However, sales slightly increased by 1.8 percent, reaching 1.6 trillion won.
Despite the lower profits, Shinsegae's financial performance surpassed market expectations. The average net profit estimate by analysts, as reported by Yonhap Infomax, was only 43 billion won. The earnings report underscores a challenging yet somewhat resilient quarter for the retailer amid fluctuating market conditions.