Hyundai Department Store Achieves Record High Sales for 2 Consecutive Years... Duty-Free Shop Reduces Deficit Margin

Sales of 4.2075 Trillion Won... Down 16.1%
Department Store and Jinus Sales Increase
Cash Dividend of 1,300 Won per Share Decided

Hyundai Department Store recorded its highest-ever sales in the department store sector last year. However, due to factors such as consumer downturn, its affiliates posted sluggish performance, resulting in a decrease in both consolidated sales and operating profit.

Hyundai Department Store announced on the 7th that its consolidated operating profit for last year was preliminarily estimated at 303.5 billion KRW, down 5.4% compared to the same period last year.

Hyundai Department Store Group CI. [Image provided by Hyundai Department Store]

During the same period, sales also fell by 16.1% to 4.2075 trillion KRW. Last year, the net loss amounted to 40.8 billion KRW, turning into a deficit.

Looking at last year’s sales by sector, the department store division’s net sales increased by 4.9% year-on-year to 2.4026 trillion KRW. The net sales of Zinus, a furniture and mattress specialized subsidiary, also rose by 57.5% to 952.3 billion KRW. On the other hand, the duty-free sector recorded sales of 997.8 billion KRW, down 55.8% compared to the same period last year.

A Hyundai Department Store official stated, "Last year, the department store division’s sales set a record high for the second consecutive year," adding, "The department store division’s sales and operating profit in the fourth quarter of last year significantly increased due to strong sales in luxury and fashion sectors and the reopening of Hyundai Premium Outlet Daejeon." Hyundai Premium Outlet Daejeon had suspended operations following a fire but reopened in June last year. Regarding the operating loss in the department store division, the official explained, "Fixed costs such as labor costs, utility expenses, and depreciation increased."

However, the duty-free sector reduced its deficit as overseas travelers increased. The duty-free division’s operating loss last year was 31.3 billion KRW, a decrease in deficit compared to 66.1 billion KRW in the previous year. Meanwhile, the department store division and Zinus saw a decline in operating profit. The operating profits of the department store and Zinus last year were 356.2 billion KRW and 18.3 billion KRW, respectively, down 6% and 34.4% year-on-year.

Regarding this, a Hyundai Department Store official explained, "Although sales decreased in the duty-free sector due to a decline in sales to daigou (Chinese personal shoppers), the deficit improved thanks to the opening of a new duty-free store at Incheon Airport and an increase in travelers."

Hyundai Department Store recorded an operating profit of 96 billion KRW in the fourth quarter of last year. This represents a 39.9% increase compared to the same period last year. However, sales during the same period decreased by 28.3% to 1.1353 trillion KRW.

Meanwhile, Hyundai Department Store decided on a year-end cash dividend of 1,300 KRW per common share on the same day. The dividend yield is 2.5%, with a total dividend amount of 28.41174 billion KRW.

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