"Zinus Slump Forgotten"... Hyundai Department Store Holds Most '1 Trillion Won Club' Stores in Seoul [Click e-Stock]

On April 23, Kyobo Securities maintained its target price of 1.3 million won and a 'Buy' investment rating on Hyundai Department Store, stating, "We expect the company to benefit from sales growth at department stores in the Seoul metropolitan area, and regional sales gains will also become visible as it opens large stores in Gwangju and Busan in the future."

Minji Jang, a researcher at Kyobo Securities, stated in a report on the same day, "Among the three major department store chains, Hyundai Department Store is believed to have the highest number of stores in Seoul with annual sales exceeding 1 trillion won." She added, "In Gyeonggi Province, the Pangyo branch ranks first with overwhelmingly higher sales compared to other stores."

For the first quarter of this year, Hyundai Department Store's total sales in the department store segment are expected to reach 1.8482 trillion won, up 6.2% year-on-year, with operating profit forecast to rise 31.5% to 127.8 billion won. The fashion sector's growth momentum continues from the fourth quarter of last year, and profitability has improved significantly compared to sales growth thanks to more efficient promotional and labor cost management.

Researcher Jang analyzed, "Although Zinus's performance has been disappointing, profit margins in the core department store business are improving significantly." She added, "Further enhancements in profitability are anticipated this year as depreciation expenses for stores such as The Hyundai Seoul come to an end, and the company's efficient cost management and growth across all categories in the department store business support a solid performance momentum."

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