Lotte Shopping profit soars 203 per cent
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While revenue for its third quarter rose 2 per cent year-on-year, South Korea’s Lotte Shopping Companysaw its net profit soar 203.9 per cent to KRW78.2 billion (US$68 million).
The retail giant says these are preliminary figures yet to be independently audited.
Third-quarter revenue rose 2 per cent to KRW7.9 trillion. Domestic department stores maintained solid same-store sales growth (SSSG) of 2.2 per cent, while hypermarket SSSG faded 2.4 per cent in the face of a sluggish industry and the impact of renewal construction.
Internationally the company had strong sales growth, apart from weakness for its China hypermarkets because of competition. Department store SSSG rose 9.2 per cent while hypermarkets declined 5.1 per cent.
Lotte’s third-quarter operating profit dipped 10.1 per cent to KRW176 billion, both for department stores and hypermarkets domestically.
On the international market there was an improvement in operating loss thanks to enhanced efficiency in all stores, plus there was an increased profit contribution from its cinema and electronics businesses.
There was an increase in labour costs because of a one-off special incentive paid to all Lotte employees.
Questions & Answers
Q.What contributed to the significant increase in Lotte Shopping's net profit?
What contributed to the significant increase in Lotte Shopping's net profit?
Net profit soared despite a modest revenue rise, with improved operating losses internationally due to enhanced efficiency. Increased profit contributions from cinema and electronics businesses also played a part.
Q.What were the main financial results for Lotte Shopping's third quarter?
What were the main financial results for Lotte Shopping's third quarter?
Revenue increased by 2 per cent to KRW7.9 trillion, while net profit rose 203.9 per cent to KRW78.2 billion. Operating profit, however, dipped 10.1 per cent to KRW176 billion.
Q.How did Lotte Shopping's domestic and international stores perform in terms of sales growth?
How did Lotte Shopping's domestic and international stores perform in terms of sales growth?
Domestic department stores saw 2.2 per cent same-store sales growth, but hypermarkets faded 2.4 per cent. Internationally, department store sales rose 9.2 per cent, while hypermarkets declined 5.1 per cent, notably in China.
Q.Why did Lotte Shopping's operating profit decline despite strong net profit growth?
Why did Lotte Shopping's operating profit decline despite strong net profit growth?
Operating profit dipped due to a decline in both domestic department stores and hypermarkets. This was despite improved operating loss internationally and increased labour costs from a one-off special incentive.
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