Shinsegae posts record quarterly operating profit under Chair Chung Yu-kyung

Q3 total sales reach 2.9 trillion won; operating profit surges 65%

Department store core business strengthens; subsidiaries improve fundamentals

Quarterly dividend doubled, treasury shares canceled to boost shareholder value

Shinsegae Chair Chung Yu-kyung [Shinsegae]

Shinsegae, led by Chair Chung Yu-kyung, posted a record operating profit in the third quarter, extending its streak of growth in both revenue and profitability.

The company said Tuesday its third-quarter consolidated operating profit rose 64.6 percent year on year to 164.3 billion won ($121 million), the highest in its history. Total sales climbed 3.2 percent to 2.9 trillion won.

The department store segment, its core business, posted total sales of 1.86 trillion won and operating profit of 103.7 billion won, up 8.5 percent and 23.5 percent respectively from a year earlier, maintaining steady growth. The flagship store led with a 44 percent gain, followed by the Gangnam branch at 17 percent and the Centum City branch at 14 percent.

The department store division credited its results to a sharper focus on core competitiveness — strengthening brand offerings, expanding differentiated content and drawing more foreign customers. Shinsegae department stores have been reinforcing their luxury and contemporary lineups at key locations while bringing in differentiated food and beverage brands. Cumulative foreign customer sales through the third quarter reached 850 billion won, more than doubling from a year earlier to set an all-time record.

Consolidated subsidiaries also contributed to the strong results. Shinsegae DF, Shinsegae Central, Shinsegae Casa and Shinsegae Live Shopping — all of which have been focused on improving their fundamentals — each posted their highest-ever third-quarter operating profit.

Shinsegae DF swung to a profit in the third quarter with operating profit of 25.3 billion won. The duty-free unit expanded differentiated services such as VIP tie-ups with affiliated businesses including department stores and premium airport pickup, driving a 27 percent cumulative increase in membership through the quarter and a 15 percent rise in spending per customer.

Shinsegae Central posted third-quarter sales of 107.2 billion won, up 9.3 percent, and operating profit of 31.2 billion won, up 13.0 percent. It was the first time the unit had recorded operating profit in the 30 billion won range since it was folded into Shinsegae in 2012. Its hotel operations — including JW Marriott, Hotel Onoma and Yeongrangho Resort — grew by double digits or more on rising foreign demand, alongside its existing leasing business, to set an all-time earnings record.

An image related to the 2026 Shinsegae Square Christmas video [Shinsegae department store]

Shinsegae International, which operates the group's fashion and beauty businesses, also saw revenue and profit grow in tandem in the third quarter. Sales rose 16.6 percent to 299.5 billion won, and operating profit swung to positive at 5.1 billion won. The fashion segment grew 17.3 percent year on year, driven by strong performances from overseas brands including UGG and Herno. The cosmetics segment posted 15.9 percent sales growth, lifted by an 18.4 percent gain from in-house brands such as Yeonjak and Vidivici.

Shinsegae Live Shopping recorded third-quarter sales of 84.8 billion won and operating profit of 3.2 billion won, up 33.3 percent — the unit's best result since it joined the group in the third quarter of 2022. The performance reflected differentiated product offerings including its own fashion brands: Shinsegae Men's Collection, Blue Fit, Edited and Elaconiq. The unit is continuing to roll out brands in the fourth quarter, including G-Cut, Juicy Couture and St. John Blue Label.

Shinsegae Casa saw third-quarter sales jump 85.0 percent to 118.2 billion won and swung to an operating profit of 900 million won. The turnaround came despite a sluggish lifestyle market, as the unit's strategy of building a specialized portfolio with JAJU, strengthening mega-hit products such as Campo and expanding online-exclusive offerings to diversify its customer base paid off.

Buoyed by the results, Shinsegae is stepping up its shareholder return policy. The company will double its third-quarter dividend from the previous level and cancel treasury shares to enhance shareholder value. It plans to continue sharing earnings improvements with shareholders and to raise corporate value through sustained expansion of shareholder returns.

"Strengthened core competitiveness in the department store business and improved management fundamentals across subsidiaries translated into earnings, allowing us to achieve a record third-quarter operating profit," a Shinsegae official said. "We will continue investing for the future while creating an insurmountable competitive edge through business specialization at each company."

Exterior view of Shinsegae department store's Gangnam branch [Shinsegae department store]

spa@heraldcorp.com