South Korea’s No. 2 retailer Shinsegae Inc. said that its net earnings plunged 98.4 percent in the third quarter from a year earlier, as its duty-free revenue continued to slump amid the new coronavirus pandemic.
SEE ALSO : Shinsegae Group opens Starfield
Net profit plummeted to US$771,577 in the July-September period on a consolidated basis, from a profit of US$46.9 million a year earlier, Shinsegae said in a regulatory filing.
Operating profit sank 73.8 percent to US$22.7 million over the cited period, with sales down 24.2 percent to US$1 billion.
Shinsegae’s gloomy third-quarter earnings were largely attributed to lower demand for duty-free goods and a slump in sales at department stores, caused by reduced international travel amid the COVID-19 resurgence, the retail behemoth said.
The company’s department store sales contracted 5.5 percent to US$328 million on-year in the third quarter. Operating profit stood at 28.1 billion won, slumping US$20.4 million won from a year ago.
Duty-free sales dipped 44.4 percent on-year to US$394.9 million. Operating losses increased to $18.5 million, sharply up from US$28.1 million from the previous year.
SEE ALSO : ARKET to open store in Korea
“We are expecting improved performance in the current quarter, led by growing sales momentum in department stores, cosmetics and global fashion revenue,” a Shinsegae official said.
(Source: Yonhap News)