Seoul: Lotte Shopping Co., an affiliate of the South Korean retail conglomerate Lotte Group, announced a significant financial turnaround in the second quarter, reporting a net profit driven by robust department store sales. The company reported a net income of 14.6 billion won (US$10.3 million) for the April-June period, a substantial recovery from a net loss of 10.3 billion won a year earlier.

According to Yonhap News Agency, the company's operating profit surged by 121.2 percent year-on-year to 89.9 billion won, while revenue saw a 4 percent increase, reaching 3.48 trillion won. The positive shift was largely attributed to the strong performance of its department stores, buoyed by increased spending from foreign travelers. The department store division's sales climbed by 9.2 percent year-on-year to 891.2 billion won, and its operating profit soared by 84 percent to 119.7 billion won.

Lotte Shopping's overseas operations also played a crucial role in the improved financial outcome. The company operates three department stores and 15 hypermarkets in Vietnam, as well as one department store and 48 hypermarkets in Indonesia. Sales from these overseas department store operations increased by 20.6 percent year-on-year to 35.6 billion won, with operating profit jumping an impressive 309.7 percent to 7.4 billion won.

In addition to the department store success, revenue from Lotte Shopping's hypermarket business rose by 2.6 percent to 1.32 trillion won, although the division did report an operating loss of 37.8 billion won. This mixed performance underscores the challenges faced by the hypermarket sector, despite overall positive results for the company in the second quarter.