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(LEAD) Shinsegae Q3 net dips 98 pct amid pandemic

All News 14:51 November 12, 2020

(ATTN: UPDATES with details throughout; ADDS photo; RECASTS headline)

SEOUL, Nov. 12 (Yonhap) -- South Korea's No. 2 retailer Shinsegae Inc. said Thursday that its net earnings plunged 98.4 percent in the third quarter from a year earlier, as its duty-free revenue continued to slump amid the new coronavirus pandemic.

Net profit plummeted to 860 million won (US$771,577) in the July-September period on a consolidated basis, from a profit of 52 billion won a year earlier, Shinsegae said in a regulatory filing.

Operating profit sank 73.8 percent to 25.2 billion won over the cited period, with sales down 24.2 percent to 1.21 trillion won.

(LEAD) Shinsegae Q3 net dips 98 pct amid pandemic - 1

Shinsegae's gloomy third-quarter earnings were largely attributed to lower demand for duty-free goods and a slump in sales at department stores, caused by reduced international travel amid the COVID-19 resurgence, the retail behemoth said.

The company's department store sales contracted 5.5 percent to 363.8 billion won on-year in the third quarter. Operating profit stood at 28.1 billion won, slumping 22.6 billion won from a year ago.

Duty-free sales dipped 44.4 percent on-year to 437.2 billion won. Operating losses increased to 20.5 billion won, sharply up from 31.2 billion won from the previous year.

"We are expecting improved performance in the current quarter, led by growing sales momentum in department stores, cosmetics and global fashion revenue," a Shinsegae official said.


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