"End of Social Distancing, MZ Generation Steps Out" Hyundai Department Store Achieves Record Quarterly Sales in Q2 (Comprehensive)

Q2 Consolidated Sales 1.1252 Trillion Won, Up 30.3%
Exceeds Market Consensus (992.9 Billion Won) by Over 130 Billion Won
Operating Profit 71.2 Billion Won, Up 23.5%, Meets Forecast
Impact of Eased Social Distancing and Consumer Sentiment Recovery, Increased Sales in Fashion and Cosmetics
The Hyundai Seoul in Its 2nd Year Shows Strong Performance, Achieves Quarterly Breakeven Point

[Asia Economy Reporter Yuri Kim] Hyundai Department Store achieved the highest quarterly sales ever, surpassing market expectations for the second quarter of this year. The easing of social distancing and the recovery of consumer sentiment led to balanced sales growth in fashion, cosmetics, and other sectors. The strong performance of The Hyundai Seoul, in its second year since opening, which gained great popularity among the MZ generation (Millennials + Generation Z), also contributed to the solid results.

On the 11th, Hyundai Department Store announced that its consolidated operating profit for the second quarter of this year was 71.2 billion KRW, a 23.5% increase compared to the same period last year. Sales during the same period rose 30.3% to 1.1252 trillion KRW. Net profit was 53.7 billion KRW, up 11.2%. Operating profit met market consensus estimates, and sales exceeded estimates (992.9 billion KRW) by more than 130 billion KRW.

During this period, the department store division's second-quarter operating profit was 85 billion KRW, a 30.2% increase year-on-year. Sales increased 8.3% to 588.8 billion KRW. It is analyzed that sales grew due to the recovery of consumer sentiment following the easing of COVID-19 restrictions. In particular, sales in the fashion·cosmetics·accessories sectors, which had been sluggish due to the ongoing COVID-19 situation, improved, indicating that virtually all product categories are recovering from the impact of the pandemic and returning to normal. Operating profit also performed well due to the recovery of high-margin product sectors and reduced fixed cost burdens from increased sales.

The duty-free division recorded an operating loss of 13.8 billion KRW in the second quarter. Sales increased 62.6% to 570.3 billion KRW. Due to continued Chinese lockdown policies in the second quarter, the operating deficit widened by about 6 billion KRW compared to the same period last year. However, there was a slight improvement compared to the previous quarter.

The cumulative operating profit on a consolidated basis for the first half of the year was 160.1 billion KRW, a 30.5% increase year-on-year. Sales rose 33.1% to 2.0596 trillion KRW. Operating profit in the department store division for the first half was 187.7 billion KRW, up 32.9%, and sales were 1.1321 trillion KRW, an 8.7% increase.

The duty-free division's operating loss for the first half was about 27.7 billion KRW. Sales increased 75.7% to 994.6 billion KRW. Although operating profit margins decreased due to the impact of Chinese lockdowns, expanding operating losses, sales grew due to the supply of imported cosmetics.

A Hyundai Department Store official said, "Due to the easing of social distancing and the recovery of consumer sentiment, sales of fashion, cosmetics, and handbags increased noticeably, resulting in the highest quarterly sales ever in the second quarter." He added, "In particular, The Hyundai Seoul has attracted great attention from the MZ generation (Millennials + Generation Z), and as a store in its second year since opening, it has unusually achieved a quarterly break-even point, showing results beyond expectations."

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