Hyundai Department Store faces mixed Q2 performance as strong department store operations are offset by subsidiary Zinus's struggles, according to securities firms' consensus estimates compiled by Yonhap Infomax on the 22nd. The consensus forecast shows Q2 operating profit of 84.4 billion won, down 2.88% year-over-year, while revenue is expected to reach 1.0244 trillion won, down 5.17% from the same period last year. The divergence stems from the department store segment's robust growth in luxury goods, fashion, and foreign customer spending, contrasted with Zinus's operating losses driven by conservative ordering from major clients. Nine securities firms submitted forecasts within the past month, with operating profit estimates ranging from 73.2 billion won to 95 billion won.
Hyundai Department Store Segment Records Double-Digit Revenue Growth
The department store division showed strong performance in Q2. Kyobo Securities estimated the department store segment's total revenue at 1.8992 trillion won, up 11.6% year-over-year, with operating profit reaching 109.7 billion won, up 58.3%. Foreign customer sales growth exceeded 60%, with foreign customers accounting for approximately 8% of total sales. Same-store sales increased 15% in April, 20% in May, and 14% in June. Foreign sales surged 40% in April, 66% in May, and 92% in June, expanding to about 8% of overall sales. LS Securities noted that foreign customer spending spread beyond The Hyundai Seoul and the Trade Center location to include Pangyo, Main Store, Songdo, and Gimpo branches.
Zinus Subsidiary Posts Operating Losses Amid Restructuring
Furniture and mattress subsidiary Zinus is expected to record operating losses in Q2 due to conservative ordering patterns from major clients. The company is currently undergoing restructuring, including disposal of its U.S. factory, pursuit of China factory sale, and reduction of product lines. Zinus targets annual cost savings of approximately 50 billion won starting in 2028 through these restructuring measures.
Duty-Free Operations Turn Profitable on Incheon Airport Sales
The duty-free segment is projected to achieve profitability in Q2. Kyobo Securities forecast the duty-free division will turn profitable with 5.5 billion won in operating profit, driven by stabilized sales at the Incheon Airport DF2 location.
Securities Analysts Project Strengthened Momentum in H2
LS Securities researcher Oh Rin-ah stated that actual sales momentum was even stronger considering June had two fewer weekend business days compared to the previous year. Heungkuk Securities assessed that earnings momentum will improve starting Q2 and strengthen further in the second half, with the duty-free segment's profitability turnaround achievable amid favorable operating conditions. Controlling shareholder net profit is forecast at 53.9 billion won, up 19.69% year-over-year.
FAQ
What is Hyundai Department Store's Q2 operating profit forecast?
The consensus forecast from nine securities firms shows Q2 operating profit of 84.4 billion won, down 2.88% year-over-year, with revenue expected to reach 1.0244 trillion won.
Why is Zinus affecting Hyundai Department Store's performance?
Zinus is expected to post operating losses in Q2 due to conservative ordering from major clients, offsetting the strong performance of the department store segment which saw revenue up 11.6% and operating profit up 58.3%.
How much have foreign customer sales grown at Hyundai Department Store?
Foreign customer sales growth exceeded 60% in Q2, with monthly increases of 40% in April, 66% in May, and 92% in June, expanding foreign customers' share to approximately 8% of total sales.
