Shinsegae International posts Q3 operating profit of 5.1 billion won, returns to profit as overseas fashion grows

[Financial News] Shinsegae International Inc. improved profitability, buoyed by growth in high-end spending on overseas fashion and beauty.
Shinsegae International Inc. said in a regulatory filing on the 10th that it provisionally recorded operating profit of 5.1 billion won on a consolidated basis in the third quarter of this year, an improvement of 9.4 billion won from the same period last year. Both its fashion and cosmetics divisions swung from operating losses last year to profits this year.
Revenue for the same period rose 16.6% to 299.5 billion won, extending double-digit revenue growth for the third consecutive quarter.
Shinsegae International Inc. said it expanded its business and improved earnings at the same time, as increased sales of luxury fashion and beauty products—even during the seasonal off-season—were joined by greater efficiency in its domestic fashion business and growth in its in-house beauty brands.
Fashion division revenue rose 17.3% from the same period last year. Overseas fashion led the results, growing 27.9%. Luxury brands including Herno, Rick Owens and Dries Van Noten grew, while Enfants Riches Déprimés and Vuori more than doubled their sales. Emporio Armani, Yohji Yamamoto and UGG also posted double-digit growth.
In domestic fashion, Harley-Davidson Collections' sales nearly doubled from a year earlier, while menswear brand MAN ON THE BOON and womenswear brand Della Lana also grew.
Cosmetics division revenue increased 15.9%. Sales of the company's own brands rose 18.4%, driving the division's results. YUNJAC, VIDIVICI and IAM, its haircare brand, achieved strong growth.
Imported cosmetics also rose 14.8% from the same period last year, posting double-digit growth. Major brands including Maison Francis Kurkdjian, Memo Paris, Hermès Beauty, Diptyque and LOEWE Perfumes saw sales increase. Color cosmetics brands such as Laura Mercier and Hourglass Cosmetics also recorded double-digit sales growth.
By contrast, its subsidiaries posted weak results. Shinsegae Tomboy's revenue fell 17.9% from the same period last year to 28.2 billion won, and its operating loss widened to 5.5 billion won. Amuse Korea also reported a 22.5% drop in revenue to 11.3 billion won and an operating loss of 2 billion won. STUDIO TOMBOY and VOV are pursuing global market expansion alongside rebranding, while Amuse Korea is also broadening its global distribution channels.
A Shinsegae International Inc. representative said, “Sales growth has continued across our major businesses, and the results of our focus on profitability in business operations are becoming visible, making the improvement in our performance more pronounced.” The representative added, “We will continue to strengthen the competitiveness of our core brands and improve operational efficiency across our businesses to build a foundation for sustained growth and stable earnings.”
[email protected] Kang Myeong-yeon Reporter