SOUTH KOREA. Department store to duty free retailer Shinsegae posted weaker than expected first-quarter results, driven by the impact of COVID-19 on travel retail results.
Group consolidated sales fell -20.5% year-on-year to KW1.84 trillion but operating profit plunged to KW3.3 billion from KW109.6 billion in the same period.
Shinsegae Duty Free’s gross sales slumped -31.0% year-on-year to KW576 billion, with downtown sales declining by -21% and a stricken airport sector by -40%. The division recorded an operating loss of KW32.4 billion compared to KW12.7 billion operating profit in Q119, driven by a combination of high airport concession fees and sharply decreased sales.
In more positive news, Shinsegae’s department store business saw a swift recovery in April after a troubled March. Gross sales of parent company Shinsegae declined just -8.4% year-on-year in April, after falling slumping -28.1% year-on-year.
