"The Hyundai Seoul Effect" Hyundai Department Store Posts 65 Billion KRW Operating Profit in Q1 'Surprise' (Comprehensive)

Hyundai Department Store Posts Operating Profit of 65 Billion KRW in Q1... Up 336.3% YoY
Surpasses Financial Investment Industry Estimate of 57.2 Billion KRW
New Store Openings Including Department Store The Hyundai and Outlet Space1 Drive Growth
Second Year of COVID-19 'Revenge Spending' This Spring Also Contributes

[Asia Economy Reporter Kim Yuri] Hyundai Department Store recorded an operating profit of 65 billion KRW in the first quarter of this year. This marks a 336% increase compared to the same period last year, when operating profit was only 14.9 billion KRW due to the frozen consumer sentiment caused by COVID-19.

This 'surprise performance' also exceeds the financial investment industry's operating profit consensus estimate of 57.2 billion KRW. The effect of new store openings, including the department store The Hyundai Seoul, which was a major issue in the retail industry earlier this year, as well as outlets, contributed to this result. The 'revenge spending' effect, which became full-fledged in the second year of COVID-19, also played a part.

Hyundai Department Store announced that its operating profit for the first quarter of this year was 65 billion KRW, a 336.3% increase compared to the same period last year. Sales during the same period rose 52.0% to 683.2 billion KRW, and net profit increased 133.8% to 55.8 billion KRW.

Department store net sales reached 497.4 billion KRW, up 26.7% from the same period last year. Operating profit recorded 76 billion KRW, an increase of 122.3%. A Hyundai Department Store official said, "The department store segment saw increases in both sales and operating profit due to new store openings such as The Hyundai Seoul and Hyundai Premium Outlet Space1, as well as the recovery in consumption of fashion product categories."

The duty-free store segment posted net sales of 215.3 billion KRW, a 169.3% increase, and reduced its operating loss by 8.2 billion KRW to 11.2 billion KRW. The improvement in performance is attributed to sales recorded at the Dongdaemun store opened in the first quarter of last year and the Incheon Airport store opened in the third quarter, as well as an increased proportion of imported cosmetics sales in the duty-free segment.

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