Hyundai Department Store's net profit beats expectations in Q1

Hyundai Department Store beat expectations with a 75.4-billion-won ($59 million) net profit in the first quarter, up 35.1 percent on year, as shoppers returned.

People enter The Hyundai Seoul, a Hyundai Department Store branch in Yeouido, western Seoul. [YONHAP]

Hyundai Department Store beat expectations with a 75.4-billion-won ($59 million) net profit in the first quarter, up 35.1 percent on year, as shoppers returned.

The figure was greater than the 51.2-billion-won market consensus compiled by FnGuide.

Revenue rose 36.8 percent on year to 934.4 billion won, also higher than the consensus of 856 billion won.

Hyundai Department Store’s business includes Hyundai Department Store Duty Free.

Sales from its department store division rose 9.2 percent on year to 543.3 billion won due to shopping demand rising as daily Omicron cases fell.

Operating profit rose 35.2 percent to 102.7 billion won thanks to more purchases of clothes and sportswear, products with a high profit margin that had less demand during the past few years due to less people going outside.

The duty-free division’s sales jumped 97 percent on year to 424.3 billion won, with sales of imported cosmetics leading the increase. Despite the rise, its operating loss grew 25 percent to 14 billion won, compared to an operating loss of 11.2 billion won the previous year. The company said its operating margin was affected by the Shanghai lockdown and rising Covid-19 cases in China discouraging international travel.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]