[Click eStock] "Hyundai Department Store, 3rd Quarter Earnings Supported by Department Store and Duty-Free"

Hi Investment & Securities Presents 'Buy' Investment Opinion and Target Price of 84,000 Won... Closing Price on the 5th is 61,600 Won

Hyundai Department Store Apgujeong Main Branch (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that both the department store and duty-free sectors performed well in Hyundai Department Store's third-quarter results.

According to Hi Investment & Securities on the 6th, Hyundai Department Store's third-quarter results showed sales of 662.3 billion KRW and operating profit of 44.7 billion KRW. Compared to the previous year, sales increased by 24.5%, while operating profit decreased by 26.5%. Ha Junyoung, a researcher at Hi Investment & Securities, explained, "Operating profit exceeded the market expectation of 32.5 billion KRW," adding, "Contrary to initial concerns, sales in the department store business quickly recovered from the impact of the second wave of COVID-19."

The department store business saw a sharp decline in sales at the end of August due to the second wave of COVID-19, but sales rapidly recovered from September. Notably, not only department stores but also premium outlet sales rebounded, showing a different pattern compared to the first wave period in February and March. Researcher Ha said, "This is judged to be a phenomenon arising as consumers have become accustomed to COVID-19," and added, "Even if COVID-19 resurges in the future, department store sales are expected to recover quickly after a short-term shock."

The duty-free sector saw sales increase by 158.2% year-on-year due to the opening of new stores such as the Dongdaemun branch and Incheon Airport branch. Additionally, the third-quarter operating loss was 11.8 billion KRW, reduced from the 17.1 billion KRW operating loss in the third quarter of last year. Researcher Ha analyzed, "The opening of the Dongdaemun branch secured buying power and the commission rate decreased compared to last year," and forecasted, "As the Dongdaemun branch quickly establishes itself, this trend is expected to continue into the fourth quarter."

Hi Investment & Securities gave Hyundai Department Store a 'Buy' investment rating with a target price of 84,000 KRW. The closing price on the 5th was 61,600 KRW.

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