Hyundai Department Store Co.,Ltd (069960)

Hyundai Department Store is a comprehensive retail company primarily engaged in operating department stores, outlets, and duty-free shops. Its core products and services include the sale of various goods such as apparel, miscellaneous goods, and food through offline stores, as well as the sale of imported and domestic products through duty-free shops. According to its 2025 business report, the department store business accounts for 51.1% of total revenue, while the duty-free shop business accounts for 23.8%. Through the acquisition of Zinus in 2022, the company also expanded its business into the mattress and furniture manufacturing sector. It maintains a third-place market position in the domestic department store market, following Lotte and Shinsegae, and has secured young consumers in their 20s and 30s, as well as foreign tourists, as key customers, thanks to the premium consumer segment and the success of The Hyundai Seoul. Hyundai Department Store has secured strong competitiveness by establishing a differentiated space that transcends the traditional image of department stores and a trend-leading image through 'The Hyundai Seoul' and 'Pangyo Store'. Furthermore, it is strengthening its competitiveness through a strategy of providing 'experiences' to customers by expanding signature content, such as attracting exclusive brands, collaborating with various brands, and developing its own cafe brand 'Teal White'. In particular, The Hyundai Seoul has successfully attracted foreign customers, leading to a significant increase in foreign sales, establishing itself as a new consumption hub. Hyundai Department Store's annual revenue decreased from KRW 5.0141 trillion in 2022 to KRW 4.1876 trillion in 2024, but showed a slight recovery to KRW 4.2303 trillion in 2025. Operating income decreased from KRW 320.9 billion in 2022 to KRW 284.0 billion in 2024, but significantly improved to KRW 377.9 billion in 2025, marking a 33.1% increase year-over-year. Net income recorded losses of KRW -39.8 billion in 2023 and KRW -0.8 billion in 2024, but successfully turned profitable with KRW 141.5 billion in 2025. Operating profit margin rose from 6.8% in 2024 to 8.9% in 2025, and recorded 10.4% in Q1 2026, clearly indicating improved profitability. Examining the company's financial health, its ROE in 2025 was 2.24%, showing a positive turnaround from negative figures of -0.01% in 2024 and -0.63% in 2023. The debt-to-equity ratio has continuously decreased from 89.55% in 2022 to 78.26% in 2025, indicating improved financial stability. The current ratio saw a slight fluctuation from 85.12% in 2022 to 82.55% in 2025, but has maintained a level in the 80% range. Hyundai Department Store anticipates improved performance in its department store segment amidst positive industry trends of expanding premium consumption and recovering foreign tourism. The company plans to open new stores in Busan and Gwangju in 2027 through its 'The Hyundai 2.0' expansion strategy. It aims to achieve group revenue of KRW 40 trillion and operating income of KRW 2 trillion by 2030, while strengthening competitiveness in its retail, fashion, and living businesses, and diversifying into new growth areas such as beauty, healthcare, and biotech. However, underperformance in the Zinus segment, a consolidated subsidiary, due to global macroeconomic uncertainties and decreased demand in the U.S. market, remains a challenge to be addressed in the future.