Shinsegae reported a total revenue of 11.4974 trillion won and an operating profit of 479.5 billion won for 2024 on a consolidated basis, according to a disclosure on the 5th. Revenue increased by 3.3% compared to the previous year, while operating profit decreased by 25%.
Operating profit decreased compared to the previous year due to the one-time reflection of estimated burdens related to the Supreme Court ruling on ordinary wages in December last year and the severance pay resulting from the retirement process at the duty-free shop, as well as the impact of accounting treatment for rent at Incheon Airport from the previous year. In the last quarter, total revenue was recorded at 3.1874 trillion won, with operating profit at 106.1 billion won.
By business segment, the department store business achieved a record total revenue of 7.2435 trillion won last year, marking the highest ever. This represents a 2.2% increase compared to the previous year. Total revenue from department stores continues to set new records each year since the COVID-19 pandemic.
Shinsegae Department Store introduced new spaces that had not existed before, starting with the Sweet Park at the Gangnam branch in 2024, along with the House of Shinsegae, Daegu's Sweet Park, and the main Shinsegae Square. It also renovated the men's luxury section in the Gangnam branch, the sports shoe section in Centum City, and the fashion section in Times Square.
As a result, the Gangnam branch surpassed a transaction amount of 3 trillion won for two consecutive years, while Centum City ranked third in the national department store ranking, becoming the first regional store to achieve this position.
Last year's operating profit was 405.5 billion won (-34.4 billion). This was influenced by one-time expenses such as estimated burdens related to ordinary wages.
This year, the plan is to continue growth by showcasing differentiated content that can attract various customers and tailored brands for each market, including the renovation of the food hall at the Gangnam branch, the new opening of the Heritage building at the main branch, and the renewal of both the main and new buildings.
Additionally, Shinsegae Casa achieved an improvement of 17.9 billion won in operating profit compared to last year, marking its first annual profit since the acquisition. Shinsegae Central City and live shopping also continued to post operating profit and showed solid growth.
Despite a challenging market environment, Shinsegae DF recorded a 4.7% sales increase last year. This year, it is expected to present a significantly changed store after completing construction at Incheon Airport Terminal 2, raising expectations for a rebound in performance.
Shinsegae decided to increase the dividend per share by more than 10% from the previous 4,000 won to 4,500 won, in line with the corporate value enhancement plan announced last December, emphasizing its commitment to returning value to shareholders.
Looking closely at the performance of the consolidated subsidiaries, Shinsegae Casa and Shinsegae Live Shopping recorded their highest performance since being incorporated into Shinsegae.
First, Shinsegae Casa recorded revenue of 67.3 billion won (+3.6%) and operating profit of 300 million won (+1.3 billion won) for the fourth quarter of 2024. The cumulative net revenue for 2024 reached 269.5 billion won (+14.6%), while operating profit was 1 billion won (+1.79 billion won), marking its first successful transition to annual profitability.
The annual profit management of Shinsegae Casa has been attributed to consistent product development and launch, as well as the growth of the sleep specialty brand 'Materasso,' despite adverse external conditions such as a downturn in the construction and real estate market and rising raw material prices.
Shinsegae Casa plans to establish the groundwork for sustainable growth in the first half of 2025 with the opening of new Materasso stores and the launch of new products in the mega-hit series Campo, while also positioning itself as a differentiated lifestyle brand within the furniture industry.
Shinsegae Live Shopping recorded revenue of 91.6 billion won (+14.0%) and an operating profit of 4.9 billion won (-5.2 billion won) for the fourth quarter of 2024.
Although operating profit in the fourth quarter decreased compared to the previous year due to temporary expense increases from channel usage fees and ordinary wage issues, the cumulative net revenue for 2024 reached 328.3 billion won (+15.6%), with operating profit at 17.7 billion won (+4.5 billion won), marking its highest performance since being incorporated into Shinsegae in the third quarter of 2022.
Shinsegae International recorded revenue of 382.3 billion won (-2.6%) and operating profit of 300 million won (-1.37 billion won) in the fourth quarter of 2024. The cumulative net revenue for 2024 was 1.3086 trillion won (-3.4%), and operating profit was 26.8 billion won (-21.9 billion won).
Shinsegae International acquired the K-beauty brand 'Amuse' and laid the groundwork for growth in 2025 by consolidating its portfolio and securing globally popular brands such as 'The Row' and 'Phoebe Philo.'
This year, the focus will be on strengthening profitability through intensive restructuring while promoting the rebranding of its own brands to secure competitiveness in its core business.
Shinsegae DF recorded revenue of 555.2 billion won (+14.7%) and an operating loss of 35.5 billion won (-44.3 billion won) in the fourth quarter of 2024. Cumulative net revenue for 2024 is reported at 2.006 trillion won (+4.7%), with an operating loss of 35.9 billion won (-122.5 billion won).
Shinsegae DF aims to enhance competitiveness by adding luxury brands within Incheon International Airport, while focusing on improving profitability through cost-efficient measures, including the closure of the Busan branch.
Shinsegae Central City recorded revenue of 97.1 billion won (+17.9%) and an operating profit of 22.7 billion won (-1.3 billion won) in the fourth quarter of 2024. The cumulative net revenue for 2024 was 375.3 billion won (+7.3%), with operating profit at 85.7 billion won (+6.3 billion won).
A Shinsegae official noted that 'despite the challenging market last year, most of the consolidated subsidiaries, including department stores, achieved external growth,' adding that 'in 2025, each company will enhance core business competitiveness and continue sustainable growth through solid management.'