As of 10:05 a.m. on June 4, Hyundai Department Store shares were trading at 130,400 won, up 8,600 won (7.06%) from the previous day. The stock has risen for five consecutive trading days since May 28, peaking at 132,000 won during the session, marking a new annual high.
Analysts attribute the surge to growing investor sentiment driven by expectations of profitability improvements in the department store sector, a return to profitability for its duty-free operations, and an increase in foreign consumer spending.
Yoo Seong-man, a researcher at Leading Investment Securities, stated, "Hyundai Department Store confirmed a rapid recovery in its core business, achieving double-digit growth in transaction volume and an operating profit of 135.8 billion won in the first quarter of this year."
He added, "The drawing power of key stores like The Hyundai Seoul, Apgujeong flagship store, and Pangyo store is improving profitability as they attract foreign tourists. The share of foreign sales rose to over 6% in the first quarter, with growth rates expanding to around 40% in April."
The duty-free business is also showing signs of profitability improvement. Hyundai Duty Free recorded an operating profit of 3.4 billion won in the first quarter, successfully returning to the black. This improvement follows the closure of its Dongdaemun location, which reduced low-margin sales and enhanced operational efficiency.
Lee Jin-hyup, a researcher at Hanwha Investment & Securities, noted, "The strong performance of the department store sector, which has led the retail industry in the first half of the year, is expected to continue into the second half. Structural growth driven by domestic consumption and inbound demand is ongoing."
He further stated, "If the share of foreign sales exceeds double digits in the second half, the contribution to growth from existing stores will increase, and the income growth resulting from improved corporate performance is likely to support strong domestic consumption."
* This article has been translated by AI.
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