(3rd LD) Lotte Shopping shifts to profit in Q1 on pent-up demand

SEOUL, May 09 (Yonhap) — Lotte Shopping Co., a subsidiary of retail giant Lotte Group, said on Monday it turned black in the first quarter from a year earlier on the back of stock gains and improved consumption amid virus mitigation.

Lotte Shopping posted a net profit of 69.13 billion won ($54 million) in the three months to March, compared with a net loss of 40.61 billion won a year ago, the company said. in a press release.

“Pent-up consumer demand helped boost quarterly earnings despite the spread of the omicron-variant virus earlier this year,” the statement said.

Stock gains worth 34 billion won from affiliates such as Lotte Card Co. and FRL Korea Co. also helped the quarterly results, he said.

FRL Korea is a 51/49 joint venture between Japan’s Fast Retailing Co. and South Korea’s Lotte Shopping to sell Fast Retailing’s Uniqlo-branded apparel in Asia’s fourth-largest economy.

Operating profit rose 11 percent to 68.71 billion won in the first quarter from 61.79 billion won a year earlier.

But sales fell 2.8% to 3.77 trillion won from 3.88 trillion won in the same period.

Sales fell due to lower stock gains in subsidiary Lotte Himart Co., the country’s top electronics retailer, the company said.

Lotte Shopping is the operator of South Korea’s largest department store chain and the third largest discount store chain.

kyongae.choi@yna.co.kr
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