"Consumption Recovery and New Store Success" Hyundai Department Store, 2Q Operating Profit 57.7 Billion KRW... Up 609.6% (Comprehensive)

[Asia Economy Reporter Yuri Kim] Hyundai Department Store recorded an operating profit of 57.7 billion KRW in the second quarter of this year, driven by strong department store sales amid consumer recovery. The solid performance of new stores such as The Hyundai Seoul, along with the recovery of high-margin product categories, positively contributed to the improved results. The duty-free business also reduced its deficit thanks to new store openings and an increased sales proportion of imported cosmetics.

On the 12th, Hyundai Department Store announced that its consolidated operating profit for the second quarter of this year reached 57.7 billion KRW, a 609.6% increase compared to the same period last year. Sales during the same period rose 67.2% to 863.8 billion KRW, and net profit increased 227.2% to 48.3 billion KRW.

Department store sales amounted to 543.8 billion KRW, up 28.1% year-on-year. Strong sales at new stores such as The Hyundai Seoul, Daejeon, and Space One and the consumer recovery trend influenced the improved performance. Even when excluding The Hyundai Seoul, Daejeon, and Space One, existing stores grew 14.5% compared to the same period last year. Operating profit rose 148.9% to 65.3 billion KRW. This was affected by the recovery of high-margin product categories and reduced fixed cost burdens due to increased sales. A Hyundai Department Store official explained, "Both sales and operating profit increased due to the effects of new store openings such as The Hyundai Seoul and the recovery in consumption of fashion product categories."

Duty-free sales reached 350.7 billion KRW, a 199.3% increase year-on-year. Sales growth was driven by strong imported cosmetics sales and increased volume. Operating loss narrowed to 7.7 billion KRW. The opening of new stores such as Dongdaemun in February last year and the airport store in September last year, along with an increased proportion of imported cosmetics sales, contributed to reducing the deficit by 10.3 billion KRW compared to the same period last year. A Hyundai Department Store official said, "the duty-free segment improved both sales and profitability due to increased 'buying power' from expanded market share."

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