LOTTE Himart Co (071840) Q3 2025 earnings summary

Executive summary

• Achieved sales and operating profit growth for three consecutive quarters, with both offline and e-commerce channels contributing to gains year-over-year.

• Operates as a leading electronics specialty retailer in Korea with 305 stores, 11 logistics centers, and an online platform as of September 2025.

• Strategic focus on lifelong customer care, store reformatting, product innovation, and expanding private brand (PB) 'PLUX' underpinned performance improvements.

• Implements ESG initiatives, achieving high ratings in environmental, social, and governance categories.

Financial highlights

• Total revenue for Q3 2025 rose 0.5% year-over-year to 798.2 billion KRW; cumulative Jan–Sep revenue up 2.0% to 2.1923 trillion KRW.

• Operating profit for Q3 was 19.0 billion KRW, with cumulative Jan–Sep operating profit at 44.9 billion KRW, excluding one-time factors.

• Net income for Q3 2025 was 9.3 billion KRW, a turnaround from net losses in previous years.

• Gross profit margin improved to 29.7% in Q3, up 0.2 percentage points year-over-year.

• SG&A expenses ratio decreased to 26.8% in Q3, down 0.8 percentage points year-over-year.

Outlook and guidance

• 2025 guidance targets sales of 2.3 trillion KRW and operating profit of 10 billion KRW.

• Long-term goals set for 2029: sales over 2.8 trillion KRW, operating profit over 100 billion KRW, and a 30% dividend payout ratio.

• Continues to invest in store upgrades, digital transformation, PB expansion, and ESG initiatives.