Lotte Shopping (023530) investor relations material

Executive summary

• Revenue for 2Q FY26 rose 4.0% year-over-year to KRW 3,485 billion, driven by strong department store sales, robust inbound tourism, and recovery in hypermarket and cultureworks segments.

• First half FY26 revenue was KRW 7,067 billion, with department stores, hypermarkets, and electronics accounting for over 80% of sales.

• Net profit attributable to controlling interests was KRW 125.4 billion, with basic EPS of KRW 4,434.

• Operating profit surged 121.2% year-over-year to KRW 90 billion in 2Q FY26, and net profit turned positive at KRW 15 billion from a loss in the prior year.

• Maintains strong credit ratings (AA- for bonds, A1 for commercial paper) and robust liquidity.

Financial highlights

• Gross sales for 2Q FY26 reached KRW 5,023 billion, up 5.6% year-over-year.

• EBITDA for 2Q FY26 was KRW 346 billion, up 19.4% year-over-year, with a margin improvement to 9.9%.

• H1 2026 consolidated revenue: KRW 7,066.6 billion; operating profit: KRW 342.8 billion; net profit: KRW 158.5 billion.

• Gross margin: 24.3%; operating margin: 4.9%.

• Cash and cash equivalents at period end: KRW 1,246.4 billion.

Outlook and guidance

• Continued growth expected from department stores, especially in luxury and fashion, and further recovery in hypermarket and cultureworks.

• Focus on strengthening core retail segments and expanding digital and e-commerce capabilities.

• Plans to open new smart fulfillment centers and invest KRW 600 billion in tangible/intangible assets in 2026.

• Targeting a shareholder return ratio of 35% and minimum annual dividend of KRW 3,500 per share through 2026.

• Strong inbound tourism and foreign customer sales are anticipated to support future performance.