Seoul: Lotte Shopping Co., an affiliate of South Korean retail giant Lotte Group, reported a narrowing of its second-quarter net losses due to strong overseas sales in emerging markets.
According to Yonhap News Agency, net losses for the three months ended June 30 dropped to 10.3 billion won (US$7.4 million) from 79.6 billion won in the same period last year, as noted in the company's regulatory filing. The company attributed the improvement to increased sales in its department stores and hypermarkets in Vietnam and Indonesia.
Lotte Shopping operates three department stores and 15 hypermarkets in Vietnam, as well as one department store and 48 hypermarkets in Indonesia. Notably, Lotte Mall West Lake Hanoi, a large complex featuring a shopping mall, supermarket, hotel, aquarium, and movie theater, has reported profits for two consecutive quarters this year since its opening in September 2023.
Despite the positive overseas performance, Lotte Shopping's operating profit fell 27.5 percent year-on-year to 40.6 billion won in the second quarter, down from 56 billion won, while sales declined 2.3 percent to 3.34 trillion won from 3.42 trillion won. The company cited growing uncertainties both at home and abroad, sluggish domestic consumption, and a widening polarization in spending patterns as factors contributing to the weak performance.
Lotte Shopping remains the largest department store chain by sales in South Korea and the second-largest discount store chain. However, the company managed to shift to a net profit of 7.79 billion won in the first half of 2025, compared to a net loss of 6.81 billion won a year earlier, driven by growth in its overseas businesses.