[Edaily Reporter Lee Hye-ra] Major securities firms are raising their target prices for #Hyundai Department Store one after another. This is based on expectations that the sharp sales growth seen since the second quarter will begin to be fully reflected in the company’s earnings.

According to the securities industry on the 18th, a total of seven securities firms have raised or newly set target prices for Hyundai Department Store this month. This month, Hanwha, Meritz, Korea, Kiwoom, IBK, and Daishin Securities have successively raised their existing target prices, while Leading Investment & Securities initiated coverage and set a new target price.
The target prices set by these brokerages range from 150,000 to 250,000 won. However, Hyundai Department Store’s stock price reached 204,000 won today, already surpassing the target prices set by some brokerages.
The stock price has risen sharply since the start of this month. Hyundai Department Store’s stock price fell on only three of the 13 trading days this month, surging by approximately 86% this month alone. This figure significantly outpaces the gains of Shinsegae (42%) and Lotte Shopping (28%) over the same period. While the stock had shown relatively weak performance compared to competitors as recently as last month, this surge is attributed to a rapid improvement in investor sentiment. Hyundai Department Store also briefly hit a new 52-week high (222,000 won) during intraday trading today.
The securities industry is unanimous in its view that Hyundai Department Store has passed the trough in its earnings. In particular, analysts view the robust growth in its core department store business and the continued profitability of its duty-free segment—starting in the second quarter—as positive developments.
Nam Seong-hyun, an analyst at IBK Investment & Securities, stated, “We expect second-quarter earnings to significantly exceed initial estimates,” adding, “Growth at existing department store locations is projected to reach the mid-10% range, and balanced growth continues across all product categories, including luxury goods, apparel, fashion, and general merchandise.”
Yoo Jeong-hyun, an analyst at Daishin Securities, noted, “The growth rate of sales to foreign customers rose from the 20% range in April to 66% in June. Same-store sales growth at department stores also reached 21% in May,” adding, “The duty-free segment is maintaining its profitable trend due to an increase in foreign customers (inbound) and a decline in discount rates at downtown stores.”
This trend is not expected to be short-lived. According to FnGuide on the same day, Hyundai Department Store’s operating profit for this year is projected to reach 4202억원, an 11.19% increase year-over-year. Sales for next year and 2028 are forecast to grow by 6.52% and 6.19%, respectively, compared to the previous year.
A Hyundai Department Store official said, “Driven by strong sales in key product categories such as luxury goods, jewelry, and fashion, as well as an expansion in foreign customers, we recorded our highest-ever sales for the first quarter, and operating profit also increased significantly,” adding, “We expect sales across all product categories, including high-margin fashion, to continue expanding in the second quarter as well.”
However, securities firms have pointed to the furniture subsidiary, Zinus, as a variable affecting future earnings and stock prices. Zinus, acquired by Hyundai Department Store Group in 2022, saw its operating loss widen in the first quarter, acting as a drag on overall performance. There is growing consensus that the timing of Zinus’s return to profitability warrants close attention.
Park Jong-dae, an analyst at Hana Securities, remarked, “Zinus is suffering significant damage from U.S. tariff policies. We expect an operating loss in the second quarter similar to that of the first quarter.” He added, “However, orders from Amazon have resumed since late May, so the second-quarter loss could narrow depending on shipping dates. To improve its cost structure, the company sold its factory in Georgia, U.S., and is in the process of closing one of its three logistics centers.”
A Ginus official said, “We plan to expand our market share in the U.S. based on our price competitiveness and simultaneously pursue growth in new markets, particularly in Europe and South Korea.” The official added, “Along with this, we will continue to restructure our business with a focus on profitability to eliminate inefficiencies and build a more stable profit structure.”