Hyundai Department Store Swings to 141.9 Billion Won Net Profit Last Year... To Cancel 350 Billion Won in Treasury Shares

Net sales of 4.2303 trillion won and operating profit of 378.2 billion won... Up 1% and 33% year-on-year
Premium store-based upscale strategy and increased foreign customer sales drive strong department store performance
Hyundai Department Store Group to make Hyundai Home Shopping a wholly owned subsidiary... 350 billion won in treasury shares to be canceled

Hyundai Department Store achieved strong growth last year, led by its department store business, with operating profit jumping 33% year-on-year. Hyundai Department Store Group decided to make Hyundai Home Shopping a wholly owned subsidiary in order to strengthen its holding company structure and enhance shareholder value, and also announced a plan to cancel treasury shares worth a total of 350 billion won in line with the government's corporate value-up policy.

Hyundai Department Store announced on the 11th that, on a consolidated basis for 2025, it posted net sales of 4.2303 trillion won and operating profit of 378.2 billion won. These figures represent year-on-year increases of 1% and 33.2%, respectively.

Net profit turned to black, coming in at 141.9 billion won.

Strong performance driven by department stores... Subsidiaries also improve profitability

The department store division was the main driver of the strong results. Last year, on a standalone basis, the department store business recorded operating profit of 393.5 billion won, up 9.6% from the previous year.

On a quarterly basis, fourth-quarter 2025 sales and operating profit came to 682.8 billion won and 137.7 billion won, respectively. Compared with the same period a year earlier, these were increases of 3.2% and 20.9%.

Hyundai Department Store explained, "These are results achieved amid large-scale investments being made for the development of mammoth new stores such as The Hyundai Gwangju, The Hyundai Busan, and Hyundai Premium Outlet Gyeongsan in North Gyeongsang Province."

The solid growth of its innovative stores is analyzed to have contributed to the strong performance of the department store division. Hyundai Department Store said, "Major stores such as the Apgujeong Main Store, Trade Center Branch, Pangyo Branch, and The Hyundai Seoul have continued to post stable sales growth through experience-focused space innovation and premium positioning strategies," adding, "In particular, the Pangyo Branch surpassed 2 trillion won in annual sales in the shortest time among domestic department stores, and has demonstrated the success of our experience-focused offline strategy by maintaining near double-digit annual growth without any store expansion or extension."

The increase in sales to foreign customers also contributed to the results. As the number of foreign customers surged mainly at The Hyundai Seoul and the Trade Center Branch, Hyundai Department Store's sales to foreign customers last year rose 25% from a year earlier.

Exterior view of Hyundai Department Store Pangyo Branch. Hyundai Department Store Group

Subsidiaries also showed improved profitability. Hyundai DF (duty-free) posted operating profit of 200 million won last year, achieving an annual surplus for the first time in the seven years since it began operations in 2018. Zinus, a furniture and mattress affiliate, kept its annual sales at last year's level with 913.2 billion won, and turned to black with operating profit of 25.8 billion won.

Hyundai Home Shopping to become 100% subsidiary of holding company Hyundai GF Holdings... 350 billion won in treasury shares to be canceled

Hyundai Department Store Group announced in a disclosure on the 11th that Hyundai GF Holdings, the holding company, and Hyundai Home Shopping, the intermediate holding company, held board meetings on the same day and resolved to approve a comprehensive share swap agreement.

Hyundai GF Holdings plans to acquire all remaining shares in addition to its existing 57.36% stake and convert Hyundai Home Shopping into a wholly owned subsidiary.

In the course of the share swap, Hyundai GF Holdings decided to immediately cancel 6.6% of Hyundai Home Shopping's treasury shares in order to protect shareholder interests.

The two companies plan to hold an extraordinary general meeting of shareholders on April 20 to vote on the share swap agenda.

The share swap ratio has been set at 1:6.3571040, and once the exchange process is completed, Hyundai Home Shopping will be delisted.

Shareholders who oppose the deal may exercise their appraisal rights, and, in accordance with applicable laws and regulations, the exercise prices have been set at 9,383 won for Hyundai GF Holdings and 60,709 won for Hyundai Home Shopping.

Hyundai Department Store Trade Center Branch. Hyundai Department Store Group

Hyundai Department Store Group explained, "The business environment surrounding the core home shopping business has deteriorated, and there have been limits to enhancing corporate value while Hyundai Home Shopping has been performing the role of an intermediate holding company within the group’s governance structure," adding, "We believe that splitting Hyundai Home Shopping into an investment company and an operating company, thereby creating a structure in which each segment can focus on its core competencies, will help boost corporate value." The operating company will focus on new businesses and mergers and acquisitions (M&A), while the newly established investment company will oversee affiliates such as Handsome and Hyundai Futurenet before ultimately merging with the holding company.

Hyundai Department Store Group added that the decision is also a strategy to resolve the "holding company discount" stemming from the deteriorating home shopping market and overlapping listings.

Hyundai Department Store Group also announced a treasury share cancellation plan in line with the government's corporate value-up policy.

Ten affiliates, including Hyundai Department Store, Handsome, and Livart, will cancel all of the treasury shares they hold, worth about 210 billion won in total, within this year, and major affiliates such as Hyundai GF Holdings (100 billion won) and Hyundai Department Store (21 billion won) will additionally buy back and cancel treasury shares worth 140 billion won.

Once the plan is completed, the total amount of treasury shares canceled by Hyundai Department Store Group will reach about 350 billion won. After the cancellation is completed, none of the 13 listed companies within the group will hold treasury shares.

A Hyundai Department Store Group representative said, "With a strong commitment to making our governance structure more transparent and enhancing corporate value through active shareholder returns, the group has made this decision."