Hyundai Department Store shares fell nearly 3% in early trading on August 6 after the company reported second-quarter earnings that fell short of market expectations, prompting securities firms to lower their price targets.
As of 1:35 PM KST, Hyundai Department Store shares were trading at 106,900 won, down 3,200 won (2.91%) from the previous trading day. The stock opened at 109,800 won and dropped to as low as 101,800 won during the session before recovering some losses.
In a regulatory filing, Hyundai Department Store announced that its consolidated revenue for the second quarter was 1.0681 trillion won, with an operating profit of 79.3 billion won. These figures represent declines of 1.1% and 8.7%, respectively, compared to the same period last year. The operating profit also fell short of the consensus estimate of 86.4 billion won.
Following the earnings announcement, several securities firms adjusted their price targets downward. DB, Korea Investment, IBK, Kiwoom, NH Investment, Hanwha, Samsung Securities, and Shinhan Investment all revised their targets. The adjusted price targets range from a low of 160,000 won by DB Securities to a high of 220,000 won by Daishin Securities.
Yoo Jeong-hyun, a researcher at Daishin Securities, noted in a report that while the disappointing performance of Zinus will lead to a downward adjustment of this year's earnings, the strong performance of the department store and the rapid improvement in duty-free sales could result in an upward revision for next year's overall earnings.
Heo Je-na, a researcher at DB Securities, stated, "Zinus will begin significant fixed cost reductions and inventory slimming in the second half of the year, moving past its worst phase. It is time to refocus on the fundamental improvements in the department store and duty-free business divisions."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.