SEOUL– Lotte Shopping Co., the retail arm of Lotte Group, said Friday that it swung to the red in the third quarter of the year from a year earlier due to a slump at its electronics retailer unit.
Net losses came at 95.1 billion won (US$67 million) on a consolidated basis for the three months ending in September, compared with a net profit of 45.5 billion won a year earlier, the company said in a regulatory filing.
Operating profit, however, increased 418.6 percent from the previous year to 150.1 billion won. Sales inched up 0.2 percent to 4.01 trillion won over the cited period.
The company attributed its third quarter net loss to a lackluster performance of its home appliance outlet, Lotte Himart Co., as its losses from equity ties increased.
The electronics retailer suffered a 98.7-percent drop in operating profit as demand for home appliances plummeted amid an economic slowdown.
Lotte Shopping’s operating income increased on narrowed losses from its e-commerce business.
The company said it plans to seek further growth across all businesses areas, with a particular focus on the e-grocery sector. Lotte inked a 1-trillion won partnership with Britain’s retail solutions provider, Ocado Group, this week.
Lotte Shopping is the retail arm of South Korea’s fifth largest conglomerate, Lotte Group, and operates the country’s biggest department store chain and second-biggest large discount store chain in terms of sales.
Source: Yonhap News Agency