South Korea’s Lotte Shopping Co. swung to a net profit in the first half of 2025 despite sluggish consumer spending, thanks to growth in its department store and overseas businesses.

The company announced on Friday that its operating profit for the first half of this year reached 188.9 billion won ($136 million), up 10.5 percent from the same period a year ago.

Sales fell 1.9 percent to 6.8 trillion won while net profit came in at 78 billion won, reversing a loss.

For the second quarter, sales fell 2.3 percent to 3.34 trillion won, and operating profit dropped 27.5 percent to 40.6 billion won.

Net loss, however, narrowed to 10.3 billion won.

Domestic department store revenue fell 2.1 percent to 1.56 trillion won in the first six months of this year due to a store closure. However, sales at key large stores such as the main branch, Jamsil branch, and Time Villas Suwon increased, resulting in same-store sales growth.

Operating profit from domestic department stores jumped 29.9 percent in the first half to 191.1 billion won on cost efficiencies.

Grocery sales, including supermarkets and convenience stores, slid 3.8 percent to 2.57 trillion won, with the segment posting a 35.4 billion won operating loss.

Overseas sales rose 5 percent to 879.3 billion won, and operating profit climbed 40.6 percent on steady growth in Vietnam.

Total sales at Lotte Mall West Lake Hanoi jumped 25.1 percent in the second quarter, marking a second consecutive quarter in the black.

E-commerce sales dropped 4.8 percent to 54.8 billion won following portfolio adjustments, but losses narrowed to 17 billion won.

Hi-Mart electronics sales inched up 0.8 percent to 1.12 trillion won, with smaller operating losses.

The home shopping unit saw a 6.8 percent drop in operating profit, while Lotte Cultureworks swung to a loss on weak domestic film releases.

Lotte Shopping expects a stronger second half on rising department store sales and momentum from its new Lotte Mart Grand Grocery store in Guri.

It plans large-scale renovations of flagship stores and a supermarket revamp focused on groceries.

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