Lotte Shopping's annual and fourth-quarter operating profit both grew last year. Fourth-quarter revenue rebounded for the first time since the fourth quarter of 2022, in what was seen as securing both top-line growth and fundamentals.

Lotte Shopping said in a regulatory filing on Thursday that its 2025 consolidated annual operating profit rose 15.6 percent from a year earlier to 547.0 billion won. Revenue over the same period was 13.74 trillion won. Fourth-quarter operating profit rose 54.7 percent to 227.7 billion won, and net profit turned positive at 114.5 billion won. Fourth-quarter revenue rose 1.3 percent to 3.52 trillion won. It was driven by improved department store performance and strong results from its Vietnam business.

In the fourth quarter, profit increased due to improved department store performance, strong results from the Vietnam business and one-off costs in the year-earlier period. The rebound in fourth-quarter revenue was the first since 2022.

Department stores were cited as the main driver of the turnaround. The department store unit's fourth-quarter operating profit rose 25.7 percent to 226.0 billion won. Revenue rose 4.4 percent to 952.5 billion won.

Department store sales to foreign customers rose 37 percent from a year earlier, posting an all-time high in transaction value at around 700.0 billion won. Overseas business also advanced. Lotte Mall West Lake Hanoi in Vietnam set a quarterly record profit, and the Vietnam discount store (mart) business improved efficiency while extending operating profit growth for a fifth straight year.

Fourth-quarter operating profit from domestic business rose 22.0 percent to 220.4 billion won. It was driven by strong customer traffic at major large-scale hub stores such as the main branch and the Jamsil branch and expanded sales of high-margin fashion products.

The mart and supermarket business posted a fourth-quarter operating loss of 10.5 billion won, with revenue of 1.65 trillion won. For the mart business, annual operating loss came to 7.0 billion won, turning to a loss, while revenue fell 1.9 percent from a year earlier to 5.47 trillion won.

In domestic business, fourth-quarter revenue edged up due to efficient promotional spending and increased inflows of foreign tourists. Broad profitability improvements, including more efficient promotional costs, narrowed the quarterly operating loss. Fourth-quarter revenue at overseas discount stores rose 3.7 percent from a year earlier to 383.4 billion won.

In the loss-making e-commerce unit, the company saw the effects of management efficiency. The e-commerce unit's fourth-quarter operating loss narrowed to 2.8 billion won, while revenue was 31.5 billion won. Gross profit margin improved on a larger share of high-margin products and rising advertising income.

Hi-Mart's fourth-quarter revenue fell 5.7 percent from a year earlier to 524.4 billion won. It reflected a base effect from a 12.3 billion won value-added tax refund in 2024, a slowdown in the domestic home appliances market and fewer business days due to differences in the timing of the Chuseok holiday. Annual operating profit, however, rose 460.8 percent to 9.7 billion won. A profitability-focused core business strategy delivered results, including the Ansim Care service, expansion of private brand products and innovation in store formats.

Home shopping fourth-quarter operating profit fell 24.9 percent from a year earlier to 10.4 billion won. It reflected a base effect from one-off gains in the year-earlier period, including a value-added tax refund, and profitability improved through rebalancing the product portfolio around profit-focused categories such as luxury goods and beauty and improving the cost structure. Revenue over the same period was 232.4 billion won.

Cultureworks posted a fourth-quarter operating loss of 2.2 billion won, while revenue rose 39.7 percent from a year earlier to 128.4 billion won. It was affected by an increase in cinema audiences due to the box office success of major overseas titles in the fourth quarter and a larger number of investment and distribution titles.

Lim Jae-cheol (임재철), head of Lotte Shopping's finance division, said, "In 2025, we maximised profitability by expanding customer traffic at large stores, actively attracting foreign tourists and successfully operating overseas businesses such as Vietnam." He added, "Going forward, we will strengthen our fundamental competitiveness in Korea, expand our dominance in overseas markets and solidify the foundation for sustainable growth."