1. What Happened? : H1 2025 Earnings Surprise
Hyundai Department Store reported sales of KRW 10,802 billion, operating profit of KRW 868 billion, and net profit of KRW 544 billion in the first half of 2025, exceeding market expectations. Operating profit, in particular, showed significant growth year-on-year.
2. Why These Results? : Drivers and Concerns
- Positive Factors: Turnaround and profitability in the furniture division (Zinus), securing growth momentum through new store openings (The Hyundai Gwangju, The Hyundai Busan, etc.), and a stable credit rating.
- Negative Factors: Declining market share in the department store sector, sluggish duty-free business, high levels of financial debt, and low R&D investment.
3. What’s Next? : Positive Momentum Coexists with Risks
In the short term, strong Q2 results are expected to have a positive impact on stock prices. However, the sluggish performance of department store and duty-free businesses, coupled with high debt levels, raises concerns about mid-to-long-term growth. The increasing volatility in interest rates and exchange rates can act as significant risk factors.
4. What Should Investors Do? : Maintain HOLD Strategy and Continuous Monitoring
Investors should maintain a ‘HOLD’ strategy and continuously monitor the effects of new store openings, the global expansion of the furniture business, and debt management strategies. The digital transformation of the department store business and increased R&D investment are also key observation points.