The new world, due to the strong performance of department stores, has set a new record for the highest quarterly performance in Q1 2026.

In the first quarter of 2026, New World Group set its highest quarterly performance in history, driven by strong department store mall business performance and improved profitability across its subsidiaries.

On the 12th, New World Group announced via a statement that, based on consolidated financial statements, operating profit for this year’s first quarter came in at 197.8 billion won, up 49.5% year over year. This figure was 16.2% higher than the market consensus of 170.3 billion won compiled by Infomax. Net sales totaled 1.8471 trillion won, up 10.9%; net profit was 145.4 billion won, up 88.5%. Sales, operating profit, and net profit all posted their highest quarterly records.

The core driver behind the improved performance was the department store mall business. The department store division recorded operating profit of 141.0 billion won, up 30.7%; sales were 740.9 billion won, up 12.4%. By sales category, luxury goods sales grew 28%, leading the growth trend; food grew 13%; and fashion rose 11%. From 2023 to 2025, New World Group invested approximately 1.8 trillion won to enhance store competitiveness. It renovated the former First Bank headquarters building into a high-end brand specialty store, “The Heritage,” and redesigned the flagship store into “The Reserve,” focused on luxury brands and groceries. The “Sweet Park” and “House of New World” at the Gangnam store, Shinsegae Market, and the fashion and sports specialty stores at the Centum City store were also rolled out in succession, strengthening the company’s ability to attract foot traffic. The company said that throughout this process, sales increased not only among local Korean customers, but also among foreign customers.

The profitability of each subsidiary also improved across the board. Shinsegae International’s first-quarter sales were 295.6 billion won, up 15.7%, with operating profit of 14.8 billion won. Shinsegae DF, which runs duty-free stores, reported sales of 589.8 billion won, up 5%, and operating profit of 10.6 billion won, achieving a turnaround to profitability. Analysts believe measures such as expanding cooperation with individual tourists, adjusting discount strategies, and introducing K-Content contributed to the improved results. However, Shinsegae DF withdrew from the DF2 area of Incheon Airport’s second terminal on the 27th of last month, which may limit future external expansion of sales. In return, the airport rent burden will be reduced, leaving room for continued improvement in profitability.

Performance at other related companies was also solid. Shinsegae Central recorded sales of 98.8 billion won, up 11.4%; operating profit was 26.0 billion won, up 17.6%. Shinsegae Live Shopping had sales of 89.8 billion won, with operating profit of 7.4 billion won, increasing by 10.7% and 29.8%, respectively. Growth was supported by the expansion of the company’s own brands “Shinsegae Men’s Collection” and “Blue Fit,” as well as strong performances from fashion brands such as Girard Roche and Sisley. Shinsegae Casa saw sales surge to 111.4 billion won, up 78.8%, and operating profit reach 1.3 billion won, due to the acquisition/transfer of the JAJU business. Against the backdrop of major distribution companies shifting from pursuing scale-only competition to operating with profitability at the center, New World Group has also delivered tangible outcomes through business restructuring and strengthened brand competitiveness, reflected in digital growth.

On the same day, New World Group’s board of directors also decided to implement its first quarterly dividend. The record date is May 29, and the total dividend is approximately 11.4 billion won, with a dividend of 1,300 won per common share. The company plans to strengthen its shareholder return policy by introducing a quarterly dividend system, while continuing to push forward with renovations of major stores and investing in differentiated content to increase corporate value. This trend could become a benchmark for whether, in an environment of slowing consumer demand and ongoing external uncertainty, the experiential competitiveness of physical stores and improvements in subsidiary business structures can produce real results.