Department Stores Soar, Marts Sprint as Lotte Shopping Co., Ltd. Posts 34.5% Rise in Third-Quarter Operating Profit (Comprehensive)

[Financial News] Lotte Shopping Co., Ltd. posted increases in both revenue and operating profit in the third quarter of this year, boosted by strong performance in its department store business and improved profitability in key business divisions.
According to the Financial Supervisory Service's electronic disclosure system on the 6th, Lotte Shopping Co., Ltd. recorded consolidated operating profit of 175.6 billion won in the third quarter of this year, up 34.5% from 130.5 billion won in the same period last year. Revenue rose 7.1% to 3.6532 trillion won from 3.4101 trillion won. Net income came to 142.4 billion won, marking a return to profitability.
The improvement was led by the department store business. Third-quarter revenue for the department store division reached 808.1 billion won, up 5.7% year on year and the highest ever for a third quarter. Operating profit rose 35.7% to 112.9 billion won over the same period. Strong sales at major stores, including Lotte Department Store's Main Branch, Jamsil Store, Busan Main Store and Incheon Store, along with an increase in foreign tourists and growth in high-margin fashion categories, drove the improvement.
The overseas department store business also continued to grow. As operating profit increased at stores in both Vietnam and Indonesia, overseas revenue rose 14.8% year on year to 35 billion won, while operating profit jumped 99.2% to 7.1 billion won. Notably, Lotte Mall West Lake Hanoi, which operates in Vietnam, surpassed 1 trillion won in cumulative revenue three years after opening.
The mart business also saw growth in both revenue and operating profit. Third-quarter revenue for the mart division rose 9.7% year on year to 1.4626 trillion won, while operating profit increased 87.5% to 21.6 billion won. In South Korea, same-store sales grew due to the base effect of consumer coupons distributed last year, the difference in the timing of Chuseok and easing competition. Overseas, however, both revenue and operating profit declined amid weaker consumer sentiment and intensifying competition in Indonesia, despite strong performance in Vietnam.
The e-commerce business also narrowed its losses. Third-quarter revenue for the e-commerce division, which operates Lotte ON, rose 18.4% year on year, while operating profit improved by 2.4 billion won. The gains came as the division strengthened profitability in key categories such as fashion and beauty and expanded advertising revenue. Growth in transaction volume related to the Digital Onnuri Gift Certificate also contributed to revenue growth.
Subsidiaries also continued to improve their performance. Lotte Cultureworks recorded revenue of 146.3 billion won and operating profit of 14.7 billion won, supported by an increase in movie theater attendance following the box-office success of foreign films and higher average ticket prices. The figures were up 14.5% and 77.9%, respectively, from the same period last year. Lotte Home Shopping also increased operating profit, helped by a profitability-focused product mix, including health foods and beauty products, and more efficient cost management.
Lotte Hi-Mart, by contrast, saw a slight increase in revenue but weaker profitability. Third-quarter revenue rose 0.3% year on year to 654.5 billion won, while operating profit came to just 5.6 billion won. Weak sales of large and household appliances, among other factors, weighed on performance.
As a result, Lotte Shopping Co., Ltd.'s cumulative revenue for the first three quarters of this year rose 4.9% year on year to 10.7198 trillion won. Cumulative operating profit for the same period increased 62.3% to 518.4 billion won, while cumulative net income reached 300.9 billion won, marking a return to profitability.
Lotte Shopping Co., Ltd. plans to continue its recovery in the fourth quarter through renovations at key stores and year-end marketing. The department store business will strengthen the competitiveness of its Incheon and Nowon stores, and plans to transform the food hall on the first basement level of its Jamsil Store into a premium dining destination by the first half of 2028. It will also seek to attract customers over the year-end period by unveiling the giant media façade “Lotte Town Light” on the exterior of Myeongdong Young Plaza.
“Strong performance at our department stores at home and abroad, a recovery in profitability across key business divisions such as marts, and the results of our subsidiaries’ efforts to improve their business structures came together to deliver meaningful growth in scale and improved earnings in the third quarter,” said Lim Jae-cheol, head of finance at Lotte Shopping Co., Ltd. “We will continue to strengthen the fundamental competitiveness of our core businesses and pursue stable growth through ongoing efforts to improve our business structure.”
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