Hyundai Department Store Benefits from Rising Department Store Shopping by Foreign Customers [Click e-Stock]

Kyobo Securities Raises Target Price
from 150,000 Won to 210,000 Won

On July 15, Kyobo Securities maintained its "Buy" investment rating on Hyundai Department Store and raised its target price from 150,000 won to 210,000 won.

Minji Jang, a research analyst at Kyobo Securities, stated, "While the weak performance of Zinus is disappointing, the improvement trend in the department store's core business and its duty-free shop margins continues." She particularly evaluated positively the significant acceleration in the growth rate of department store sales to foreign customers. Jang also assessed that Zinus could potentially recover its performance through cost-efficiency measures, and that there are still opportunities for profitability improvement centered on the core business.

In fact, the growth rate in the department store segment was noticeable in the second quarter results. Jang projected Hyundai Department Store's second-quarter 2026 results at 1.0772 trillion won in revenue and 73.2 billion won in operating profit. Compared to the same period last year, this represents declines of 0.3% and 15.7%, respectively, and she expected operating profit would fall short of market expectations. She explained, "The main reason for missing market expectations is the underperformance of Zinus."

Specifically, the department store segment is expected to post 1.8992 trillion won in revenue and 109.7 billion won in operating profit, up 11.6% and 58.3% year-on-year, respectively. Transaction value growth stands at 16% compared to the previous year, and Jang noted that while the fashion sector continued to grow, the luxury goods category expanded sharply owing to price increases from major brands. In particular, the foreign customer growth rate, which was 20% in the first quarter (year-on-year), is estimated to have surpassed 60%. Accordingly, the share of sales to foreign customers is expected to reach the 8% range.

In contrast, the Zinus segment is forecast to record 171.6 billion won in revenue and an operating loss of 31.8 billion won. Jang explained that sales are likely to contract due to the conservative order stance of major client companies.

This content was produced with the assistance of AI translation services.