[Edaily Reporter Kim Yoon-jung] Hana Securities assessed that #Hyundai Department Store is showing clear signs of improving performance in its department store and duty-free business, and that the recovery of Zinus’s performance is a key variable for future earnings.

On the 16th, Park Jong-dae, an analyst at Hana Securities, stated, “The department store business continues to post strong results,” adding, “In terms of earnings, it has definitely passed the bottom.”
Hyundai Department Store’s department store division is estimated to have seen same-store sales increase by 10% year-over-year in the first quarter based on managed sales, and to have continued growing at a rate of around 17% in April and May. The share of sales from foreign customers is also expanding. Analysis indicates that the share of foreign sales in the second quarter rose to 7.5%, up from 6% in the first quarter. Among foreign sales, luxury goods accounted for approximately 60%, and Chinese customers accounted for more than 50%.
Researcher Park explained, “The department store business is pursuing a strategy of reorganizing around large flagship stores, dominating the premium outlet market, and increasing the share of foreign sales.”
Plans for new store openings were also presented. Hyundai Department Store plans to sequentially open The Hyundai Busan by the end of 2027, the Gyeongsan Premium Outlet by the end of 2028, and The Hyundai Gwangju by the end of 2029. The redevelopment of the Apgujeong flagship store was also cited as a mid- to long-term growth driver.
The duty-free business was assessed as showing improved profitability. Analyst Park explained, “With the closure of the Dongdaemun store, which had been posting an annual deficit of 40 billion won, the duty-free business turned profitable starting in the third quarter of 2025,” adding, “While the airport stores had been generating profits, the operating losses at the downtown stores were significant, resulting in an annual deficit of around 30 billion won.” He continued, “We began operating the Incheon Airport DF2 duty-free store in April of this year, and this has been positive from a profitability perspective,” adding, “We are targeting annual sales of 600 billion won and the break-even point (BEP), and it appears we already reached the BEP in May.” Hana Securities projected that the DF2 business could generate annual operating profits of 20 to 30 billion won.
On the other hand, Zinus was still cited as a burden. Analyst Park noted, “Due to the impact of U.S. tariff policies, an operating loss similar to that of the first quarter is expected in the second quarter,” but added, “Since Amazon orders resumed after the end of May, the deficit could narrow depending on shipping schedules.” He continued, “To improve the cost structure, the company sold its Georgia, U.S. factory and is in the process of closing one of its three logistics centers,” adding, “Uncertainties regarding the duty-free business have been resolved, and now only Ginus remains.”
The consensus estimate for consolidated operating profit in the second quarter is approximately 77 billion won, a 11% decrease year-over-year. However, since an increase of over 50 billion won is expected from the department store business and around 5 billion won from the duty-free business, a shift to profit growth is possible depending on Ginus’s performance.
Analyst Park noted, “The department store sector is in a phase of upgrading in terms of both earnings and valuation,” adding, “The current stock price is at a 12-month forward price-to-earnings (P/E) ratio of 13 times, and a valuation of 15 times or higher is certainly feasible.”