Hyundai Department Store 1Q Operating Profit 68.9 Billion KRW... Down 11.6% YoY Due to Jinus Slump
Department Store Q1 Sales 593.6 Billion KRW... Largest Quarterly Record
Hyundai Department Store's operating profit for the first quarter of this year was reported to have decreased compared to the same period last year. While the core department store business performed well, the duty-free and furniture businesses were sluggish.
Hyundai Department Store announced on the 9th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 68.9 billion KRW, down 11.6% from 77.9 billion KRW in the same period last year. Sales amounted to 951.7 billion KRW, a 13.3% decrease compared to 1.0977 trillion KRW in the same period last year. However, net profit increased by 1.8% to 70.8 billion KRW.
By business segment, the department store recorded sales of 593.6 billion KRW and operating profit of 103.1 billion KRW in the first quarter of this year. These figures represent increases of 3.6% and 8.3%, respectively, compared to the same period last year. Sales were the highest ever on a quarterly basis. Hyundai Department Store explained that this was due to strong sales at key stores, Pangyo Branch and The Hyundai Seoul, centered on luxury goods, young fashion, and sports product categories.
The duty-free business posted sales of 240.5 billion KRW, down 27.6% year-on-year, but reduced its operating loss significantly to 5.2 billion KRW from 15.7 billion KRW in the same period last year. The duty-free business benefited from strong sales at the Incheon Airport branch and an increase in individual travelers, contributing to improved profitability.
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On the other hand, global online furniture and mattress company Jinus recorded sales of 152.2 billion KRW, a 33.5% decrease compared to the same period last year. Additionally, it turned to an operating loss of 19.1 billion KRW. Hyundai Department Store explained, "Jinus's profit declined due to delayed new product shipments caused by inventory depletion at customer companies," adding, "a rebound is expected from the second quarter when mattress compression packaging technology is further advanced and main product replacements take place."
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