Lotte Shopping (023530) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue rose 3.6% YoY to KRW 3,582 billion, led by strong Department Store sales and balanced growth across segments, including Cultureworks and HomeShopping.

• Operating profit surged 70.6% YoY to KRW 253 billion, with net profit up 694.1% YoY to KRW 144 billion, reflecting improved equity method profit and robust segment performance.

• The company operates across department stores, discount stores, electronics, supermarkets, home shopping, film, e-commerce, and other segments, with discount stores contributing the largest share of sales.

• The group maintains a strong liquidity position, with cash and cash equivalents at KRW 2,241 billion as of March 31, 2026.

Financial highlights

• Gross sales increased 5.4% YoY to KRW 5,156 billion, and gross profit rose 6.7% to KRW 1,725 billion.

• EBITDA for Q1 FY26 was KRW 508 billion, up 28.4% YoY.

• Department Store revenue up 7.9% YoY to KRW 837 billion; operating profit up 43.5% to KRW 184 billion.

• Overseas Department Store revenue up 14.7% YoY; operating profit up 268.7%.

• Domestic Hypermarket revenue up 2.2% YoY to KRW 1.0 trillion; operating profit up 30.9% to KRW 9 billion.

• Overseas Hypermarket revenue up 3.4% YoY to KRW 485 billion; operating profit up 16.8% to KRW 25 billion.

• Supermarket revenue up 0.2% YoY to KRW 306 billion; operating profit declined due to higher SG&A from new store openings.

• E-commerce revenue up 3.8% YoY to KRW 27 billion; operating loss narrowed by KRW 2.7 billion to KRW 5.8 billion.

• Hi-mart revenue down 6.1% YoY to KRW 497 billion; operating loss expanded to KRW 16 billion.

• HomeShopping revenue up 2.1% YoY to KRW 232 billion; operating profit up 118.6% to KRW 26 billion.

• Cultureworks (cinema) revenue up 44% YoY to KRW 125 billion; operating profit of KRW 8 billion, reversing a loss.

Outlook and guidance

• Double-digit growth in Department Store and Hypermarket segments expected to continue in Q2 and likely into the second half, supported by strong luxury and fashion categories and inbound tourism.

• HomeShopping profitability expected to remain higher than last year due to continued focus on high-margin products.

• E-commerce growth and profitability to improve as business shifts to high-margin categories and Zetta platform expansion.

• Vietnam expansion ongoing, with new Hypermarkets planned and Department Store expansion under review.

• The company targets a shareholder return ratio of 35% for 2024–2026, with a minimum annual dividend of KRW 3,500 per share.