Q3 Operating Profit 92.2 Billion KRW, Up 94.1% · Revenue 1.3721 Trillion KRW, Up 48.4%
Department Store Operating Profit 96.5 Billion KRW, Up 64.6%…Strong Sales in High-Margin Categories like Fashion
Duty-Free Store Faces Continued China Lockdown Policy…Core Product Sales Including Imported Cosmetics Increase
Zinus Included in Q3 Consolidated Results This Year…Operating Profit 10.6 Billion KRW, Down 46.3% Due to Raw Material and Freight Cost Increases
[Asia Economy Reporter Kim Yuri] Hyundai Department Store posted results exceeding market expectations for the third quarter of this year, driven by eased consumer sentiment in department stores amid the endemic (periodic outbreak of infectious diseases) and the effect of consolidating Jinus's performance.
On the 8th, Hyundai Department Store announced that its consolidated operating profit for the third quarter of this year reached 92.2 billion KRW, a 94.1% increase compared to the same period last year. During the same period, sales rose 48.4% to 1.3721 trillion KRW, and net profit increased by 10.0% to 69.3 billion KRW. These figures surpass the third-quarter consensus estimates compiled by FnGuide, which projected an operating profit of 85.3 billion KRW and sales of 1.1594 trillion KRW.
The consolidated results include department store and duty-free store performances, as well as Jinus, which was included in the consolidated results starting from the third quarter of this year. The cumulative operating profit for the first three quarters reached 252.3 billion KRW, up 48.3%, and sales increased by 38.8% to 3.4317 trillion KRW.
The department store segment recorded strong performance in the third quarter as consumer sentiment improved due to the endemic, with high-margin product categories such as fashion, sports, and cosmetics showing robust sales. Operating profit in the department store division for the third quarter was 96.5 billion KRW, a 64.6% increase from the same period last year. Sales during this period rose 13.2% to 560.7 billion KRW. For the cumulative three quarters, operating profit was 284.2 billion KRW and sales were 1.6928 trillion KRW, up 42.2% and 10.2%, respectively.
The duty-free store segment expanded its operating loss due to the continued impact of China's lockdown measures. The duty-free stores recorded an operating loss of 15.0 billion KRW, widening the deficit by 3.7 billion KRW compared to the same period last year. Sales increased by 22.1% to 558.0 billion KRW.
Jinus, included in the consolidated results from the third quarter, posted an operating profit of 10.6 billion KRW for the third quarter, down 46.3% from the same period last year. Sales rose 4.0% to 286.2 billion KRW. The decline in operating profit was due to increased raw material and maritime freight costs since last year.
A Hyundai Department Store official stated, "The easing of social distancing measures, recovery of consumer sentiment, and the effect of newly consolidating Jinus led to a significant increase in consolidated sales and operating profit for the third quarter." He added, "In particular, the department store division saw a substantial rise in operating profit due to strong sales of high-margin product categories such as fashion, sports, and cosmetics." He further explained, "Although the duty-free store segment recorded an operating loss due to the continued lockdown policies in China, sales increased thanks to steady growth in key product categories such as imported cosmetics."
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