[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Department Store released its second-quarter report, which fell short of stock market expectations.

The result reflects the operating loss and sluggish consumption caused by the non-operation of Hyundai Premium Outlet's Daejeon branch, which caught fire last year.

Hyundai Department Store announced on the 8th that its operating profit in the second quarter of this year was 55.6 billion won, down 21.9% from the second quarter of last year. This is 21.9% below the Hyundai Department Store's operating profit consensus (average forecast for domestic securities firms) of KRW 71.2 billion in the second quarter, which was compiled by securities information company FnGuide.

Sales and net profit in the second quarter fell 13.8% and 52.3%, respectively, to 970.3 billion won and 25.6 billion won.

Sales in department stores rose 0.9% to 594.1 billion won by division. Operating profit fell 27.8% to 61.3 billion won. Sales of Young Fashion, children and food groups increased, but 10.8 billion won in operating losses from the non-operation of Hyundai Premium Outlet's Daejeon branch was reflected.

Sales in the duty-free sector fell 65.9 percent to 194.2 billion won, but the operating loss was 800 million won, up 12.9 billion won, it said.

Hyundai Department Store Group expects earnings to improve in the second half. First of all, department stores are expected to have new luxury stores in major stores and strengthen their competitiveness. Louis Vuitton is scheduled to open in Hyundai Seoul, Christian Dior in Pangyo, Boucheron in Daegu, and Buccellati in Apgujeong headquarters. Hyundai Premium Outlet Daejeon branch is expected to be reflected in its performance as it reopened in June.

 

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