Seoul: Shinsegae Inc., the operator of South Korea's second-largest department store chain, announced on Friday a remarkable increase in its third-quarter net profit, which rose by over 30 percent due to sustained sales growth across its major affiliates. The company reported a net profit of 48.3 billion won (US$33.2 million) for the July-September period, marking a 31.9 percent increase compared to the same period last year, as detailed in a regulatory filing.

According to Yonhap News Agency, Shinsegae's operating profit saw a 7.3 percent year-on-year increase, reaching 99.8 billion won, while overall sales climbed by 6.2 percent to 1.63 trillion won. These results surpassed market expectations, with analysts having anticipated a net profit of 27.2 billion won, based on a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.

The company attributed the improved earnings to consistent sales growth within its department store sector and other significant affiliates. The department store division experienced a sales increase to 1.71 trillion won, up 1.4 percent from the previous year, fueled by store renovations and rising demand for home appliances and jewelry.

Shinsegae International, the fashion and cosmetics subsidiary of the company, reported sales of 310.4 billion won, reflecting a 4.9 percent increase. Notably, its cosmetics division achieved record third-quarter sales of 111.1 billion won. The duty-free retail segment also experienced a significant boost, with sales escalating by 14.2 percent year-on-year to 538.8 billion won, driven by a resurgence in overseas travel.

A company official stated, "We will continue to strengthen competitiveness across subsidiaries and maintain stable growth through constant innovation and portfolio restructuring."