Lotte Shopping's consolidated operating profit for 2025 rose 15.6 percent on year to 547 billion won ($372 million), the company announced Friday.
Annual sales fell 1.8 percent to 13.74 trillion won, while the retailer returned to a net profit of 73.5 billion won. The company attributed the earnings improvement to strong performance at its department stores and growth in its overseas operations, particularly in Vietnam.
In the fourth quarter, operating profit surged 54.7 percent on-year to 277.7 billion won, and sales rose 1.3 percent to 3.52 trillion won, marking the first quarterly revenue growth since the fourth quarter of 2022.
The quarterly improvement was driven by higher foot traffic at major domestic flagship stores and increased spending by foreign tourists.
The department store division led the growth. Fourth-quarter sales rose 4.4 percent to 952.5 billion won, while operating profit jumped 25.7 percent to 226 billion won. The overseas department store unit returned to profit, supported by record earnings at Lotte Mall West Lake Hanoi.
The hypermarket and supermarket division posted a 1.1 percent increase in sales to 1.65 trillion won in the October-December period but remained loss-making. The e-commerce unit significantly reduced its operating loss, narrowing the deficit by more than 60 percent.
Lotte Home Shopping reported weaker results amid sluggish market conditions. Fourth-quarter sales fell 9.6 percent to 232.4 billion won, and operating profit dropped 24.9 percent to 10.4 billion won.
“We improved profitability by attracting more customers to major flagship stores and strengthening our overseas businesses, including in Vietnam,” said Lim Jae-chul, head of Lotte Shopping’s finance division. “We aim to build a sustainable growth foundation by enhancing our core competitiveness at home and expanding our presence overseas.”
sunblessyou@heraldcorp.com
