"Duty-Free and Zinus Drive Results"...Hyundai Department Store's Q2 Operating Profit Soars 102.8%

Sales Reach 1.0803 Trillion KRW, Up 5.5% Year-on-Year

Hyundai Department Store's performance in the second quarter of this year improved significantly, driven by better results from its duty-free business and Zinus. However, the department store division saw declines in both sales and operating profit due to reduced sales area, including major store renovations.

On August 6, Hyundai Department Store announced in a regulatory filing that its consolidated operating profit for the second quarter was provisionally tallied at 86.9 billion KRW, up 102.8% from the same period last year. During the same period, sales increased by 5.5% to 1.0803 trillion KRW. Net profit for the period turned positive at 54.5 billion KRW.

By business segment, the department store division recorded sales of 590.1 billion KRW and operating profit of 69.3 billion KRW in the second quarter of this year, down 3.6% and 2.3% respectively from the same period last year. The company explained, "Department store sales declined due to weakened consumer sentiment, and operating profit decreased as a result of lower sales."

The duty-free division posted sales of 293.5 billion KRW, up 22% year-on-year, and its operating loss improved by 2.6 billion KRW to a loss of 1.3 billion KRW. This was attributed to enhanced cost efficiency and robust business performance. The company stated that, excluding 1.7 billion KRW in costs related to the Dongdaemun withdrawal (such as severance payments), the division actually posted an operating profit of 400 million KRW.

Global online furniture and mattress company Zinus achieved solid results by minimizing tariff risks through business restructuring and price increases on certain products. Second-quarter sales reached 229.5 billion KRW, up 11.2% year-on-year, and operating profit turned positive at 29.1 billion KRW, an increase of 43.3 billion KRW compared to the previous year. Excluding the effect of tariff refunds (19.9 billion KRW), operating profit was 9.2 billion KRW, up 23.4 billion KRW from the previous year, according to the company.

A Hyundai Department Store representative stated, "The duty-free division's results improved due to operational efficiency and increased travel demand, while Zinus continued to post strong results thanks to expanded mattress demand from key clients in the United States and other countries, as well as the effects of business restructuring and cost improvements."