1. GS Retail’s Q1 Performance: What Happened?

GS Retail reported sales of KRW 29,806 billion (+0.56% YoY) and operating profit of KRW 845 billion (+20.20% YoY) in Q1 2025. The steady growth of convenience stores and supermarkets drove this positive performance. However, net income fell sharply to KRW 153 billion, significantly below expectations (-65.93% YoY).

2. Core Business Growth vs. Net Income Shock: Why the Discrepancy?

The robust performance of the convenience store business and efficient cost management contributed to the growth in operating profit. However, the decline in net income can be attributed to factors such as the sluggish performance of the home shopping business and unexpected costs related to development projects.

  • Positive Factors: Convenience store and supermarket growth, strengthened O4O strategy
  • Negative Factors: Home shopping decline, development project uncertainties, macroeconomic risks

3. Investment Strategies: What’s the Next Move?

GS Retail presents both growth potential and uncertainty. Investors should consider the following:

  • Short-Term Investment: Analyze the cause and sustainability of the net income shock.
  • Long-Term Investment: Assess the core business competitiveness, home shopping turnaround strategy, and development project risk management.

4. Investor Action Plan: What to Watch?

Continuously monitor these key indicators:

  • Analysis of net income decline
  • Home shopping digital transformation strategy and performance
  • Development project risk management status
  • Changes in macroeconomic indicators