Lotte Shopping (023530) investor relations material

Executive summary

• 3Q26 revenue rose 7.1% YoY to KRW 3,653bn, operating profit increased 34.5% to KRW 176bn, and net profit was KRW 142bn versus a KRW 49bn loss.

• 9M 2026 revenue was ₩10.72tn, operating income ₩518.4bn and net income ₩300.9bn, versus a prior-year net loss of ₩40.9bn.

• Department-store foreign-customer sales rose 80% YoY in Q3; reported department-store operating profit was affected by one-off expenses, including taxes.

Financial highlights

• 3Q26 gross profit rose 5.7% to KRW 1,715bn and SG&A increased 3.2% to KRW 1,540bn; gross sales grew 6.3% to KRW 5,060bn.

• 9M gross profit increased 5.6% to KRW 5,159bn and SG&A rose 1.6% to KRW 4,641bn; separate-basis revenue was ₩6.44tn and operating income ₩369.6bn.

• Q3 department-store operating profit was below expectations due to one-off expenses; excluding these, operating income would have been higher than shown in the materials.

• 9M basic EPS was ₩9,085 versus a loss of ₩2,151; Q3 EPS was ₩4,650 versus a loss of ₩2,003.

Outlook and guidance

• Foreign-customer sales momentum is expected to remain healthy into 2027, though detailed targets were not shared.

• H2 growth is expected to remain high, supported by a favorable base, holiday timing, indirect benefits from Homeplus and consumers’ price sensitivity.

• October department-store growth was similar to last year; higher revenue and a greater share of high-margin fashion supported profit in September and October.

• Fresh-food and grocery growth continued in October, with momentum expected through year-end, excluding holiday gift-set timing effects.