Seoul: Lotte Shopping Co., an affiliate of the South Korean retail conglomerate Lotte Group, announced a significant increase in net profit for the first quarter, with figures showing nearly an eightfold rise compared to the same period last year. This surge in profit was attributed to the robust performance of its department stores and successful overseas operations.
According to Yonhap News Agency, Lotte Shopping reported a net profit of 143.9 billion won (approximately US$98.3 million) for the January-March period, marking a 694.1 percent increase from the previous year. The company's operating profit also saw a substantial rise of 70.6 percent, reaching 252.9 billion won, while overall sales increased by 3.6 percent to 3.58 trillion won.
The company credited its improved earnings to increased spending by foreign customers at its department stores and the strong sales performance of high-margin products, such as fashion items. Specifically, the operating profit for department stores rose 47.1 percent year-on-year to 191.2 billion won, with sales up 8.2 percent to 872.3 billion won, setting a new record for quarterly results.
Lotte Shopping's overseas ventures also proved to be significant contributors to its overall performance. The company operates several retail outlets, including three department stores and 15 hypermarkets in Vietnam, and one department store plus 48 hypermarkets in Indonesia. Notably, Lotte Mall West Lake Hanoi, a large mixed-use complex, registered a record quarterly profit of 4.9 billion won in the first quarter.
Additionally, Lotte Mart, the hypermarket chain of the company, reported an operating profit of 33.8 billion won, reflecting a 20.2 percent increase from the previous year. Lotte Cultureworks, which manages Lotte Cinema, returned to profitability, buoyed by the box-office success of the Korean historical film "The King's Warden."
Looking ahead, Lotte Shopping has plans to enhance its K-content merchandising offerings at its flagship department stores as a strategy to further boost sales from international visitors.