Yahoo Finance

• Q4 Revenue: KRW3.5 trillion, 4.3% YoY decline.

• Q4 Gross Sales: Decreased from KRW20.4 trillion to KRW19.8 trillion, down by KRW630.7 billion YoY.

• Gross Profit Margin: 48.2%, 1.7 percentage points YoY increase.

• Q4 Operating Profit: KRW147 billion, 27.3% YoY decrease; excluding one-off expenses, KRW211.3 billion, 4.4% YoY decrease.

• Annual Revenue: KRW14.0 trillion.

• Annual Operating Profit: KRW473 billion; excluding one-off expenses, KRW537 billion, 5.7% YoY increase.

• Net Loss: Expanded due to impairment losses from land re-evaluation.

• Domestic Department Store Q4 Revenue: KRW880 billion, 3.5% YoY decline.

• Domestic Grocery Q4 Revenue: KRW1.3 trillion, 3.3% YoY decline; renovated stores showed 9.3% sales growth.

• E-commerce Q4 Revenue: KRW35.3 billion, 7.0% YoY decrease.

• Overseas Department Store Revenue: KRW32.5 billion, 13.4% YoY increase.

• Overseas Hypermarket Revenue: KRW370 billion, 5.9% increase; OP increased by 61.9%.

• Hi-mart Revenue: KRW556 billion, 3.8% YoY decline.

• Home Shopping Revenue: KRW257 billion, 1.2% YoY decline; OP up by 38.2% YoY.

• Cultureworks Revenue: KRW92 billion, 45.7% YoY decline.

• Non-operating Loss: KRW1.2 trillion.

• Land Book Value: Increased from KRW8.3 trillion to KRW17.7 trillion after re-evaluation.

• Debt Ratio: Decreased by 61.8 percentage points to 128.6%.

• Dividend Per Share: KRW3,800, maintaining previous year's level.

• Warning! GuruFocus has detected 5 Warning Signs with XKRX:023530.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lotte Shopping Co Ltd (XKRX:023530) reported a 1.7 percentage point increase in gross profit margin year-over-year, reaching 48.2%.

• Recently renovated stores, such as Hypermarket's Grand Grocery Eunpyeong and Time Villas Suwon shopping mall, showed double-digit sales growth.

• The company's overseas business, particularly in Vietnam and Indonesia, continued to grow, with the Overseas Hypermarket segment reporting a 5.9% revenue increase and a 61.9% increase in operating profit.

• Lotte Shopping's land re-evaluation increased the land book value by KRW9.5 trillion, significantly improving the debt ratio by 61.8 percentage points.

• The Home Shopping segment saw a 38.2% year-over-year increase in operating profit due to product profitability enhancement and cost optimization efforts.

Negative Points

• Lotte Shopping's Q4 revenue decreased by 4.3% year-over-year, primarily due to weak domestic demand and an unfavorable consumer environment.

• Operating profit for Q4 decreased by 27.3% year-over-year, impacted by one-off expenses related to ordinary wages and bad debt expenses.

• The Domestic Department Store unit experienced a 3.5% year-over-year revenue decline, with operating profit dropping by 20.6% due to increased labor costs and a higher portion of low-margin categories.

• The E-commerce unit recorded a 7.0% year-over-year revenue decrease, with an operating loss of KRW7 billion, despite efforts to enhance product-profit margins and cost optimization.

• The Cultureworks cinema division reported a 45.7% year-over-year revenue decline, with a KRW16 billion operating loss due to slow recovery in domestic box office sales and bad debt expenses.