11st announced on the 15th that it has significantly improved its profitability by reducing its operating losses by more than half in the third quarter compared to the same period last year. According to SK Square’s quarterly report and IR materials disclosed on the 14th, 11st’s operating loss in the third quarter was 14.6 billion KRW, which is a 55.0% (17.9 billion KRW) improvement compared to the same period last year. This marks six consecutive quarters of reducing operating losses year-on-year.
The cumulative operating loss for the first to third quarters of this year was also reduced by 42.4% (38.6 billion KRW) compared to the same period last year, achieving a significant improvement. The net loss for the third quarter was 14.2 billion KRW, a 58.6% (20.1 billion KRW) decrease from the same period last year, and sales reached 122 billion KRW.
Under the management principle of prioritizing profitability, 11st has been expanding its performance improvement centered on its open market sector, while making efforts to reduce fixed costs and improve operations through marketing efficiency and relocating its headquarters, leading to a clear improvement in performance. Especially in its core business of the open market sector, steady growth in vertical services and specialized shops, along with an expansion of club-type membership customers, resulted in strong performance, with eight consecutive months of operating profit surplus from March to October.
The vertical service for fresh food, “Fresh Table,” saw a 45% growth in transaction volume in the third quarter compared to the same period last year, and the value-oriented “9,900 KRW Shop” achieved its highest monthly transaction volume in its first year since opening last September.
In response to the large-scale settlement delay issue in July and August, 11st increased support for sellers, resulting in increased activities from small and medium-sized sellers including “original sellers,” and an 8% increase in new customers compared to the previous quarter. The company also solidified its position as the second in the industry in terms of monthly active users (MAU).
In the retail sector, 11st contributed to performance improvement by streamlining the operation of directly purchased products and enhancing fulfillment services, accelerating the restructuring towards a sustainable business model.
After successfully hosting the annual largest shopping event, the “Grand 11 Day” (November 1-11), 11st aims to continue expanding profitability-centered management performance in the remaining fourth quarter and maintain the positive performance trajectory by persisting with operational efficiency.
This year, during the Grand 11 Day, over 24 million customers visited 11st, resulting in numerous sales records and signaling a positive indication for November’s performance. Targeting value-conscious consumers, over 320,000 economy coffee franchise e-coupons were sold during the event, and a total of 88 live broadcasts were conducted, surpassing 27 million cumulative views.
Several products achieved substantial sales, including the robot vacuum cleaners ‘Roborock S8 MaxV Ultra’ and ‘Dreamy X40 Ultra,’ the ‘Samsung Galaxy Book 4 Pro,’ and the ‘Google Play Gift Code worth 100,000 KRW,’ with sales exceeding 1.5 billion KRW. Over 330 products exceeded sales of 100 million KRW each.
Building on the success of the Grand 11 Day, 11st plans to host the “Black Friday Original” event at the end of this month, which is the largest international direct purchase event of the year, to continue the shopping momentum in November. The company will also continue investing in fundamental e-commerce competitiveness. Efforts include launching AI-integrated customer services such as ‘AI Feed,’ improving the home tab UI/UX, and intensifying platform sophistication to enhance shopping convenience.
Jung Eun Ahn, CEO of 11st, said, “Through continuous structural improvement, we are achieving the goal of strengthening profitability and creating new opportunities by offering differentiated services that reflect changing customer trends and needs.” She added, “We will focus on all efforts to ensure that the positive performance trend continues in the remaining fourth quarter.”