What: Luxury demand soars, allowing the retailer to reduce net losses

Why is it important: Operating income for the January-March period rose 18.5% on-year to KRW 61.8 billion.

The operator reported net losses for the quarter ending in March that narrowed to KRW 40.6 billion (USD 36.5 million) from KRW 43.3 billion during the same period in 2020.

Lotte attributed this improved performance to demand for luxury goods in its department stores. The group’s discount and supermarket chains, however, are seeing less of a rebound. The company’s sales fell 4.8% to KRW 3.9 trillion (USD 3.5 billion) from last year’s KRW 4.1 trillion (USD 3.7 billion).

Lotte Shopping’s Losses Narrow as Luxury Demand Soars