Korea’s major duty free operators may be facing a bleak outlook for their recovery from the pandemic, but their earnings in the second quarter improved from a year earlier.
Three of the four largest market players reported a surge in their respective year-on-year sales for the April-June period. Hyundai Department Store Duty reported 165 per cent increase, The Shilla Duty Free reported 92.7 per cent and Shinsegae Duty Free reported 80.4 per cent.
While the No. 1 market player, Lotte Duty Free, has not announced its quarterly results yet, its year-on-year sales are estimated to have expanded by 40 per cent. Regarding operating profits during the same time period, those of The Shilla Duty Free and Shinsegae Duty Free went into the black. Hyundai Department Store Duty Free reported an operating loss, but it still improved from an US$15.4 million loss to a US$6.6 million loss.
“Nevertheless, these improved performances lag behind the earnings in the pre-pandemic era in 2019 and therefore can send a misleading signal as if the industry is on the recovery track,” a source said.
Another source attributed the improvement in the quarterly earnings to the firms, slimming down their businesses to better counter the prolonged Covid-19 pandemic.
