Hyundai Department Store reported a more than 30% increase in operating profit for the third quarter, driven by strong sales in its department store segment and growth in its duty-free business.
The company announced on November 4 that its consolidated operating profit for the third quarter reached 94.6 billion won, a 30.1% increase compared to the same period last year. During the same period, sales rose to 1.1723 trillion won, marking a 16.0% increase. However, net profit fell by 35.7% to 30.7 billion won.
Growth in the department store segment was particularly notable. Third-quarter net sales for department stores reached 614.5 billion won, up 6.5% from the previous year. Operating profit for this segment increased by 27.8% to 114.1 billion won.
The rise in foreign customers and increased sales of key product categories such as fashion, luxury goods, and high-end jewelry contributed to this growth. Notably, spending by foreign tourists significantly supported the department store's performance.
The duty-free business also saw improvements in both sales and profitability. Third-quarter net sales reached 366.6 billion won, a 64.8% increase year-on-year, while operating profit surged by 145.6% to 3.2 billion won. The duty-free segment has now recorded five consecutive quarters of profitability.
The increase in international travel demand, along with the successful establishment of the DF2 zone at Incheon Airport, which opened in April, has driven these results.
In contrast, the furniture and mattress subsidiary, Zinus, continued to report losses. Third-quarter net sales fell by 6.8% to 225.2 billion won, with an operating loss of 12.5 billion won, attributed to a slowdown in consumer spending in the U.S. market, leading to reduced mattress orders from major clients.
However, Zinus's operating loss improved compared to the previous quarter. Hyundai Department Store noted that the recovery in client orders and restructuring of its profit and loss structure contributed to this improvement. The company plans to continue structural improvements across its operations, including production and logistics, in the fourth quarter.
For the first three quarters of this year, consolidated sales totaled 3.1904 trillion won, a 0.1% increase from the same period last year. Cumulative operating profit reached 272.7 billion won, up 0.2%. Despite the growth in the department store and duty-free segments, Zinus's poor performance impacted overall results, which remained similar to last year's figures.
Additionally, Hyundai Department Store announced that it has decided to retire 232,460 shares of its treasury stock, with a planned retirement value of 21 billion won.
* This article has been translated by AI.
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