Hyundai Department Store net profit beats expectations in first quarter

People enter the Hyundai Seoul, a branch of the Hyundai department store in Yeouido, western Seoul. [YONHAP]

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

This figure was higher than the market consensus of 51.2 billion won compiled by FnGuide.

Revenue rose 36.8% year on year to 934.4 billion won, also above the consensus of 856 billion won.

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

Sales at its department store division rose 9.2 percent year on year to 543.3 billion won on higher shopping demand as daily cases of Omicron declined.

Operating profit rose 35.2% to 102.7 billion won on the back of more purchases of apparel and sportswear, high-profit-margin products that have seen less demand in recent years in due to a drop in the number of people leaving.

Sales in the duty-free division jumped 97 percent year on year to 424.3 billion won, with sales of imported cosmetics leading the increase. Despite the rise, its operating loss rose 25% to 14 billion won from an operating loss of 11.2 billion won the year before. 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 [[email protected]]