[Edaily Reporter Lee Hye-ra] On the 17th, IBK Investment & Securities raised its target price for #Hyundai Department Store to 250,000 won and maintained its “Buy” rating, citing expectations for improved earnings and a more favorable consumer environment.

Nam Seong-hyun, an analyst at IBK Investment & Securities, stated in a report released that day, “We expect second-quarter earnings to significantly exceed initial estimates.”
IBK Investment & Securities projected that Hyundai Department Store’s consolidated net sales for the second quarter would reach 1.1953 trillion won, a 10.6% increase year-over-year, while operating profit would rise 29.0% to 112.1 billion won.
Although the possibility of a decline in operating profit was raised due to weak performance from Hyundai Department Store’s furniture brand “Zinus” and the impact of last year’s one-time gains, the analysis suggests this will be offset by stronger-than-expected results from the department store and duty-free divisions.
In particular, the department store division is seen as leading the improvement in performance. Analyst Nam stated, “We expect same-store sales growth in the second quarter to reach the mid-10% range,” adding, “We are seeing balanced growth across all product categories, including luxury goods, apparel, fashion, and general merchandise.”
He continued, “Driven by strong sales of high-margin products and revenue growth exceeding expectations, the pace of profit growth is accelerating significantly,” adding, “The improvement in the department store division’s performance alone should be sufficient to fully offset the negative impact from the slump at Zinus.”
He explained that the duty-free business is also contributing to the improvement in performance. “Profitability at downtown duty-free stores is rapidly improving due to the recovery in inbound demand driven by an increase in foreign tourists,” he said, noting, “The effects of operating the DF2 zone at Incheon International Airport’s duty-free shop are also being reflected.”
He forecast that profit growth will accelerate even further in the second half of the year.
The forecast is that Ginus’s cost-efficiency initiatives are entering their final stages, and the sustained growth of department stores along with the effects of the expanded floor space at the Incheon Airport duty-free shop will also be reflected. Hyundai Department Store’s global expansion strategy, “The Hyundai Global,” is also drawing attention as a key driver.
Analyst Nam said, “We expect the growth rate to expand further, given that profit growth is possible even with the impact of Zinus’s weak second-quarter performance.”