LOTTE Himart Co (071840) Q1 2025 earnings summary

Executive summary

• Achieved first revenue increase in 3 years and 7 months, with all channels showing growth trends year-over-year.

• Operates as a nationwide electronics retailer with 314 offline stores and 11 logistics centers as of Q1 2025, focusing on both offline and online sales channels.

• Strategic focus on small families, cost-effective products, and subscription models to drive future growth.

• Launched a new private brand (PB) 'PLUX' in April 2025, targeting small households and expanding product offerings.

• Maintains a leading market share among electronics specialty retailers, though share declined to 27.7% in 2024 from 32.7% in 2022.

Financial highlights

• Total revenue for Q1 2025 was KRW 665.4 billion, up 3.4% year-over-year.

• Reported revenue reached KRW 529.0 billion, a 0.7% increase year-over-year.

• Operating loss reduced to KRW 11.1 billion from KRW 16 billion a year ago; excluding one-time costs, loss was KRW 8.1 billion.

• Net loss improved to KRW 13.8 billion from KRW 19.5 billion year-over-year.

• Gross profit rose 14.7% year-over-year, with margin improving by 3.5 percentage points.

Outlook and guidance

• Expects to achieve KRW 10 billion operating profit for the full year, marking a significant turnaround.

• Q1 performance exceeded internal targets and is on track to meet annual guidance.

• Continues to invest in store network and IT infrastructure, with planned investments of KRW 28.2 billion in 2025.

• Focuses on strengthening online competitiveness and expanding customer care services.

• Expects ongoing market competition and macroeconomic headwinds to impact sales and profitability.