LOTTE Himart Co (071840) Q2 2025 earnings summary

Executive summary

• Achieved revenue and profit growth for two consecutive quarters, signaling a return to a growth trajectory.

• Operates as a leading electronics retailer in Korea, with 310 stores and 11 logistics centers as of June 2025, and a robust online presence.

• Main business is retail and wholesale of home appliances, focusing on white goods, kitchen, and IT electronics.

• Launched new PB brand 'PLUX' and subscription services in 2025 to target growing single-person households.

• Maintains strong ESG initiatives, achieving high ratings in environmental, social, and governance categories.

Financial highlights

• 2Q revenue reached KRW 594.2B, up 2.6% YoY; 1H revenue at KRW 1,123.2B, up 3.0% YoY.

• 2Q operating profit was KRW 10.5B, an increase of KRW 7.7B YoY; 1H operating profit at KRW -0.6B, up KRW 12.7B YoY.

• Net profit for 2Q was KRW 11.1B, up KRW 9.7B YoY; H1 2025 net loss was KRW 2.7B.

• Basic EPS for H1 2025: -116 KRW; FY2024: -13,199 KRW; FY2023: -1,529 KRW.

• Total assets as of June 2025: KRW 1,911.3B; equity: KRW 924.3B.

Outlook and guidance

• Annual operating profit guidance set at KRW 10B, with a focus on business turnaround.

• Plans to expand subscription services and Apple repair centers, targeting 200,000 annual care customers and 1.2M repair cases.

• Focus on expanding PB brand, subscription services, and franchise/commission-based sales through furniture/interior partners.

• Plans to enhance online and offline integration, and further develop customer care and installation services.

• Continued investment in ESG and sustainability, including solar power and energy efficiency upgrades.