Shinsegae Inc. reports record revenue, consensus-beating profit

[SHINSEGAE]

Shinsegae Inc. reported a net profit of 505 billion won ($401.49 million), a 29.9 percent increase on-year, beating the 462 billion-won consensus compiled by FnGuide.

The company said the growth was due to resumption of economic activities as Covid-19 subsides, as well as increased revenue from duty-free businesses.

The company reported an all-time high revenue of 7.81 trillion won last year, a 23.7 jump compared to 2021 due to growth spurt from its subsidiaries such as Shinsegae International.

The figure exceeded analyst expectations of 7.77 trillion won.

Net profit in fourth quarter jumped 88.3 percent to 177.24 billion won, beating market expectations of 130.3 billion won.

Revenue increased 14.5 percent to 2.2 trillion won, above market expectations of 2.18 trillion won.

"As people resume their daily lives such as traveling overseas, the fashion business for male and female casual clothes, as well as cosmetics and sectors related to traveling, such as carriers, contributed to department store profit," a spokesperson from Shinsegae Inc. said.

Shinsegae runs Shinsegae Department Store, Shinsegae Duty Free and subsidiaries like Shinsegae International.

All department store workers received 4-million-won bonuses to commemorate the all-time high revenue.

Shinsegae International reported an all-time high operating profit of 115.3 billion won, a 25.3 percent increase. It’s the first time the company broke 100 billion won since it was founded in 1996. Revenue rose 7.1 percent to 1.55 trillion won.

“Revenues and profits for domestic fashion brands, such as Studio Tomboy, Vov and g-cut drastically improved,” said a spokesperson from Shinsegae International. “Through increasing the volume of lifestyle brand Jaju and our cosmetic brands, we were able to record an all-time high revenue and operating profit.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]