Hyundai Department Store’s consolidated sales for the third quarter this year decreased by 3.2% compared to the previous year, totaling approximately 1.0368 trillion KRW. The company’s operating profit declined by about 13% year-on-year. Hyundai Department Store attributed the decrease in sales to the temporary closure of Connect Hyundai Busan due to renovation work and the unseasonably warm weather reducing sales of fall and winter apparel.
On November 7th, Hyundai Department Store announced that its operating profit for the third quarter was approximately 64.6 billion KRW, down 12.7% from about 74 billion KRW in the previous year. Sales revenue increased by 3.2% from approximately 1.0042 trillion KRW in the previous year to about 1.0368 trillion KRW.
The department store’s standalone operating profit was approximately 71 billion KRW, an 11% decrease compared to the previous year. Net sales decreased by 2.1% to approximately 568.3 billion KRW. Duty-free stores reported an operating loss of about 8 billion KRW, thus turning to a deficit, with net sales decreasing by 3.9% to approximately 228.2 billion KRW.
Zinus, on the other hand, recorded an operating profit of about 11.9 billion KRW, a 277.1% increase from the previous year. Net sales increased by 23.2% to approximately 272.9 billion KRW.
A representative from Hyundai Department Store explained that the temporary closure of Connect Hyundai Busan for renovations and the prolonged warm weather resulted in decreased sales for the fall and winter fashion season.
Additionally, while the duty-free store at Incheon Airport achieved a surplus due to increased passenger traffic and competitive brand acquisitions, overall duty-free sales and operating profits decreased due to sluggish domestic demand in China and changes in foreign tourist trends.
The representative further noted that Zinus saw an increase in sales and operating profit due to a normalization of orders in its core North American mattress market, leading to increased production. The transition from the existing ‘Big Box’ product to a new ‘Small Box’ product, which improved compression rates by over 50%, also significantly improved profitability, realizing a structural turnaround.