Hyundai Dept Store Q2 OP up 9%, upbeat on duty-free shop opening

2018.08.10 13:32:38 | 2018.08.10 15:37:39

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South Korea’s retail giant Hyundai Department Store Group reported a near 10 percent on-year jump in operating profit for the second quarter led by brisk sales of high-end and household goods and was upbeat for the latter half with the planned opening of its first duty-free outlet.

Hyundai Department Store Group said in a regulatory filing on Thursday that its operating profit for the second quarter ended June rose 9.1 percent to 75.3 billion won ($66.98 million) from a year earlier on a consolidated basis. Sales rose 1.5 percent on year to 442.3 billion won.

When one-time factors including tax refund and the 20.5 billion won loss from stock disposal were excluded, operating profit grew 15.9 percent and sales were up 2.4 percent from a year earlier, explained the company.

Shares of Hyundai Department Store, the conglomerate’s main unit, gained 1.83 percent to close at 100,000 won in Seoul trading on Friday.

It attributed the solid second-quarter performance to high-end and household goods sales that are on a steady rise.

The retailer anticipated it would fare well in the latter part of this year as it is readying to open more outlets, including its first duty-free shop, in the coming months.

The company has been the only one among the country’s top three retailers that has not run travel retail business. But after it secured a license for a duty-free store operation in December 2016, it will be opening its first duty-free outlet in COEX Mall in Gangnam, southern Seoul in November.

Hyundai Department Store Group was spun off from Hyundai Group in 1999 to focus on retail business. Its business spans from upscale department store business and TV home shopping to fashion, furniture, and food.

By Lee Han-na and Cho Jeehyun

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