Hyundai Department Store Q3 Operating Profit Jumps 30% as Department Store and Duty-Free Businesses Drive Growth

Department Store Operating Profit: KRW 114.1 Billion
Duty-Free Business Posts Profit for Fifth Consecutive Quarter
Zinus Reports KRW 12.5 Billion Operating Loss in Q3

Hyundai Department Store significantly increased its operating profit in the third quarter, driven by improved results in its department store and duty-free businesses. However, cumulative consolidated results remained near the previous year's level, while its furniture and mattress affiliate Zinus continued to post losses.

Hyundai Department Store said on November 4 that it recorded consolidated net sales of KRW 1.1723 trillion and operating profit of KRW 94.6 billion in the third quarter. These figures were up 16.0% and 30.1%, respectively, from the same period last year. By contrast, cumulative net sales for the first three quarters rose 0.1% to KRW 3.1904 trillion, while operating profit edged up 0.2% to KRW 272.7 billion.

The department store division increased both sales and profit, driven by an influx of foreign customers and strong sales of fashion, luxury goods and high-end jewelry. Third-quarter net sales rose 6.5% year over year to KRW 614.5 billion, while operating profit increased 27.8% to KRW 114.1 billion. Cumulative net sales and operating profit also rose 7.7% and 40.7%, respectively, to KRW 1.8908 trillion and KRW 360 billion.

The duty-free business also saw increases in both sales and operating profit. Third-quarter net sales rose 64.8% to KRW 366.6 billion, while operating profit increased 145.6% to KRW 3.2 billion. The results were supported by steady growth in the DF2 area at Incheon International Airport, which opened in April, and an increase in the number of passengers arriving and departing. The duty-free business extended its profit streak to five consecutive quarters. Cumulative operating profit for the first three quarters came to KRW 12.8 billion, an improvement of KRW 14.7 billion from the same period last year, turning the business profitable.

Zinus, on the other hand, struggled as mattress demand declined amid weaker consumer spending in the United States. Third-quarter net sales fell 6.8% year over year to KRW 225.2 billion, and the company posted an operating loss of KRW 12.5 billion. Cumulative net sales fell 29.0% to KRW 512.3 billion, while the company swung to an operating loss of KRW 69.3 billion.

Hyundai Department Store said, "Sales and operating profit declined as customers' demand for mattresses fell amid weaker consumer spending in the United States, our main market. However, operating results improved significantly from the previous quarter as customers' order volumes gradually returned to normal and the effects of our restructuring began to be reflected." The company official added, "We plan to continue restructuring operations across the business, including production and logistics, to sustain the improvement in profitability in the fourth quarter."

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