Hyundai Department Store is experiencing a strong performance in trading, buoyed by improved profitability in the third quarter and news of a stock buyback. The positive results from its department store and duty-free businesses, along with expectations for shareholder returns, are believed to have stimulated investor sentiment.
According to the Korea Exchange, as of 2:07 PM on November 5, Hyundai Department Store's shares rose by 6,000 won (7.43%) to 86,800 won. The stock opened at 84,300 won and briefly surged to 88,500 won during the trading session.
The rise in stock price appears to be influenced by the company's recently announced third-quarter results. Hyundai Department Store reported an operating profit of 94.6 billion won for the third quarter, a 30.1% increase compared to the same period last year. Revenue rose by 16.0% to 1.1723 trillion won. However, net profit fell by 35.7% to 30.7 billion won.
In contrast, its subsidiary, Zinus, which specializes in furniture and mattresses, continued to struggle. Zinus reported a third-quarter net revenue of 225.2 billion won, a 6.8% decline, and an operating loss of 12.5 billion won. The downturn is attributed to reduced consumer demand in its key market, the United States, leading to decreased mattress orders from clients.
On the same day, Hyundai Department Store announced plans for a stock buyback as part of its shareholder return strategy. The company will retire 232,460 shares it previously acquired, with a planned buyback amount of 21.0621 billion won. This buyback will reduce the total number of issued shares, although it will not affect the company's capital.
* This article has been translated by AI.
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