(LEAD) Lotte Shopping turns to black in Q2 on strong department store sales

In the second quarter, Lotte Shopping, a subsidiary of the South Korean retail giant Lotte Group, transitioned from a loss to a profit, thanks to robust department store sales. The company reported a net income of 14.6 billion won (approximately $10.3 million) for the April-June quarter, marking a significant turnaround from the previous year's 10.3 billion won loss, as per a regulatory filing.

The company's operating profit soared by 121.2 percent year-on-year to 89.9 billion won during the same period, while its total revenue increased by a modest 4 percent to 3.48 trillion won. This turnaround was primarily fueled by strong department store performance, attributed to heightened spending by foreign tourists. Department store sales in the division rose by 9.2 percent year-on-year to 891.2 billion won.

In addition to department stores, Lotte Shopping operates 15 hypermarkets in Vietnam and 48 hypermarkets in Indonesia. Overseas operations also played a part in the improved financial performance. Sales from Lotte Shopping's overseas department store operations rose by 20.6 percent year-on-year to 35.6 billion won, with corresponding operating profits increasing by an astounding 309.7 percent to 7.4 billion won.

Meanwhile, the hypermarket business generated revenue of 1.32 trillion won, but posted a loss of 37.8 billion won.