LOTTE Himart Co (071840) Q2 2026 earnings summary

Executive summary

• 2Q26 sales returned to growth, with net sales up 0.6% year-over-year excluding a prior-year VAT refund one-off; gross sales rose 0.7% year-over-year.

• Operates as a leading electronics retailer with 291 stores, 11 logistics centers, and a robust online platform, focusing on white goods, kitchen appliances, and IT electronics.

• Expanded business scope with new ventures in outdoor advertising, franchise, custom PC assembly, and home visit sales, leveraging existing infrastructure for growth.

• Online channel sales grew 7.2% year-over-year in 2Q, while offline sales were nearly flat.

• All three core strategies—Care Service, PB (PLUX), and Used Phones—delivered strong growth in 1H26.

Financial highlights

• 2Q26 revenue: KRW 5,911 billion (-0.5% YoY; +0.6% ex-one-off); 1H26 revenue: KRW 10,880 billion (-3.1% YoY; -2.6% ex-one-off).

• 2Q26 operating profit: KRW 9 billion (-96 YoY); 1H26 operating loss: KRW -139 billion (-133 YoY).

• 2Q26 net loss: KRW -45 billion; 1H26 net loss: KRW -249 billion.

• Cash and cash equivalents increased to KRW 113.6 billion at June 2026 from KRW 64.7 billion at end-2025.

• Total assets at June 2026 were KRW 1,877 billion, with equity of KRW 909 billion and liabilities of KRW 968 billion.

Outlook and guidance

• Order backlog at June-end was 1,334 units, up 383 YoY, indicating improving demand.

• Strategic focus on expanding high-frequency categories (IT & Mobile), Care Service, and used business to drive future growth.

• Continues to diversify revenue streams through new business models such as subscription services, franchise expansion, and custom PC sales.

• Focuses on enhancing customer experience with digital transformation, AI-powered online services, and integrated omni-channel strategies.

• Plans to expand home care and after-sales services, leveraging demographic trends and evolving consumer needs.