Lotte Shopping, operating profit increased by 34.5% in the third quarter... Highest sales in department store history (2nd total)

Lotte Shopping announced on the 6th that its operating profit in the third quarter of this year was provisionally calculated to be 175.6 billion won on a consolidated basis, an increase of 34.5% compared to the same period last year.

Sales increased 7.1% to KRW 3.6532 trillion, and net profit turned into a surplus at KRW 142.4 billion.

While all Lotte Shopping divisions achieved sales growth, the department store led the performance rebound by posting the highest ever sales in the third quarter.

◇ Department store performance improves due to strong foreign sales… Mart, Homeplus benefit from financial difficulties

The department store division's third quarter sales increased 5.7% from the previous year to KRW 808.1 billion, and operating profit increased 35.7% to KRW 112.9 billion. Sales are the largest ever in the third quarter.

Based on all department stores, luxury goods sales increased by 25% and luxury jewelry sales increased by 50%, leading to strong performance.

Foreign sales in the Myeongdong commercial district also increased.

Foreign sales increased by 95% at Lotte Department Store's main branch in the third quarter. The proportion of foreigners in sales at the head office increased by 10 percentage points to 29%.

In overseas business, Lotte Mall Westlake Hanoi in Vietnam became the first Korean department store to enter overseas markets to exceed KRW 1 trillion in cumulative sales within three years of opening. Overseas business sales increased by 14.8% compared to the same period last year to KRW 35 billion, and operating profit increased by 99.2% to KRW 7.1 billion.

The mart division posted sales of KRW 1.4626 trillion (up 9.7%) and operating profit of KRW 21.6 billion (up 87.5%) in the third quarter.

This year, the Chuseok holiday falls in the third quarter and it is interpreted that sales increased as a result of Homeplus' management difficulties.

E-commerce division sales increased 18.4% compared to the previous year. Operating loss was 7.2 billion won, a decrease of 2.4 billion won compared to the same period last year.

Lotte Home Shopping, a consolidated subsidiary, operated products focusing on health food and beauty and streamlined management, increasing sales by 7.3% to KRW 226.8 billion and operating profit by 27.6% to KRW 13.1 billion.

Lotte Cultureworks recorded 146.3 billion won in sales, a 14.5% increase in sales, and 14.7 billion won in operating profit, a 77.9% increase. This is due to the increase in the number of visitors to domestic movie theaters following major foreign film box office hits.

Lotte Hi-Mart maintained its sales at the previous year's level by posting KRW 654.5 billion in sales (up 0.3%) in the third quarter. Operating profit decreased to 5.6 billion won.

◇ Department store base store renewal… Year-end season ‘Lotte Town Light’ unveiled

Lotte Shopping's cumulative sales for the first to third quarters of this year were KRW 10.7198 trillion, up 4.9% from the same period last year, and operating profit was KRW 508.4 billion, up 62.3%. Cumulative net profit is 309 billion won.

Lotte Shopping plans to continue its performance growth by continuing to renew stores in major department stores and conducting marketing to attract customers during the year-end and Christmas seasons.

The goal is to renew the basement food hall at Lotte Department Store's Jamsil branch and turn it into a 'world-class gourmet flagship' by the first half of 2028.

During the year-end season, the media façade ‘Lotte Town Light’ will be unveiled on the exterior of Young Plaza in Myeongdong, and the ‘Cosmonergy Plaza’ in the basement of the main store will also be unveiled. Christmas markets are also held at major stores, including the Jamsil branch.

Lotte Mart and Supermarket plan to increase customer attraction in connection with the ‘Tonkken Day’ promotion and continue to develop differentiated PB products. Online, the platform will be strengthened centered on the ‘Zeta’ app.

Lim Jae-cheol, head of Lotte Shopping's finance division, said, "We achieved meaningful top-line growth and profit improvement in the third quarter due to the solid performance of domestic and overseas department stores, the recovery of profitability in major divisions such as marts, and the improvement in the structure of our subsidiaries. We will continue to achieve stable growth by strengthening the competitiveness of our core business and improving our structure."