Lotte Shopping's Q1 net losses narrow as department store sales recover

Lotte Shopping Co.'s first-quarter net losses narrowed from 43.3 billion won last year to 40.6 billion won this year on recovering department store sales.

Consumer sentiment for luxury goods recovered after a year into the coronavirus pandemic.

However, sales remain sluggish at Lotte's large discount store chains and supermarket chains.

The retail giant's operating income soared 18.5 percent to 61.8 billion won in the first quarter from last year's 52.1 billion won.

Sales dropped 4.8 percent from 4.07 trillion won last year to 3.88 trillion won this year.

The company's operating profit was 57.1 percent lower than the average estimate.

Shares in Lotte Shopping, operator of South Korea's biggest department store outlets, rose 2.78 percent to 129,500 won on the Seoul bourse, outperforming the 1.63 percent gain at KOSPI.