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(LEAD) Shinsegae Q2 net profit quintuples on brisk department sales amid eased curbs

Earnings 15:33 August 10, 2022

SEOUL, Aug. 10 (Yonhap) -- Shinsegae Inc., a South Korean retail giant, said Wednesday its second-quarter net profit jumped nearly fivefold from a year earlier, thanks to brisk sales at its department stores from eased virus restrictions and robust performance from its affiliates.

Net profit came to 82.3 billion won (US$62.8 million) in the April-June period on a consolidated basis, up from 16.7 billion won a year earlier, the company said in a regulatory filing.

Operating profit also jumped 94.7 percent to 187.4 billion won, with sales climbing 34.5 percent to 1.87 trillion won.

Shinsegae attributed the increased earnings to overall growth of its offline businesses, and robust performance from its affiliated companies.

Operating profit from Shinsegae department stores soared 80.6 percent on-year to 121.1 billion won. Sales of women's fashion grew 34.2 percent, while men's fashion increased 34.7 percent and outdoor brands 43.6 percent.

Shinsegae International, the fashion affiliate of Shinsegae, also saw its quarterly operating profit jump 46 percent to 38.7 billion won. Its contemporary women's fashion brands sold well, while more customers came out for shopping after the government eased social distancing rules, Shinsegae explained.

Its online business showed modest growth, with sales from the sector growing 12.2 percent from a year earlier.

Shinsegae is a major South Korean retailer of fashion and lifestyle goods. It operates 13 department stores in the country, and owns Shinsegae International, a fashion retailer, and Shinsegae duty-free stores.

Shinsegae's flagship department store in central Seoul is shown in this undated photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)


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