SOUTH KOREA. Lotte Duty Free sales fell -17.1% year-on-year to KRW2.0295 trillion (US$1.39 billion) in the first nine months of 2025. However, operating profit returned to a KRW40.1 billion (US$27.5 million) surplus, the result of three consecutive positive quarters.
The latest consolidated figures exclude the Busan downtown duty-free and Gimhae Airport business, controlled by separate entities.
Third-quarter revenue fell -9.4% year-on-year to KRW724.1 billion (US$496.7 million). Operating profit was as mentioned in the black for the third successive quarter, reaching KRW18.3 billion (US$12.5 million).
The company attributed the sales decline in Q3 and year-to-date to a strategy of reducing reliance on the Chinese reseller market. Lotte Duty Free said it was benefitting from increased visits by independent tourists, plus a strengthening of the online business.
Commenting on the profit performance in Q3, Lotte Duty Free said it “remained positive despite the persistently high exchange rate and inflation, driven by increased visits from independent tourists (FITs) and increased online sales, thanks to strengthened marketing efforts”.
Online duty-free sales increased around +28% compared to Q3 last year, while sales at overseas operations climbed about +8% year-on-year in the quarter {main story continues following the communication below}.
The company noted: “The number of multinational tourists visiting Korea has been steadily increasing recently, riding the wave of the K-content craze.
“Furthermore, the implementation of visa-free entry for Chinese group tourists in late September, coupled with the hosting of the Asia-Pacific Economic Cooperation (APEC) summit, is fuelling a growing trend of revitalised exchanges between Korea and China.”
Lotte Duty Free said FIT visitor numbers to its Myeong-dong flagship store are steadily increasing.
“Lotte Duty Free plans to maintain sales growth by strengthening its downtown duty-free infrastructure and expanding online and offline promotions, while also continuing to pursue a profitability-focused management strategy,” a statement added.
A Lotte Duty Free official stated: “We have achieved a profit for three consecutive quarters by strengthening our efforts to attract domestic and foreign customers and activating online sales. Lotte Duty Free will continue to expand both sales and profitability through efficient operations and strengthened marketing.” ✈
