Hyundai Department Store (069960) Q3 2025 earnings summary

Executive summary

• Expansion in foreign tourist inflows, driven by K-content popularity and visa-free entry for Chinese tourists, is boosting retail momentum and foreign sales, with 2025 foreign sales expected to reach KRW 600bn (+20% YoY).

• Consolidated revenue for the first nine months of 2025 was KRW 3,188.6 billion, with operating income of KRW 272.0 billion and net income attributable to owners of the parent at KRW 158.3 billion, marking a significant turnaround from losses in the prior year.

• The department store segment remained the largest contributor, while the duty-free segment showed a reduced loss and the furniture manufacturing segment returned to profitability.

• Cash and cash equivalents increased to KRW 300.8 billion, and the company maintained a strong equity base of KRW 6,340.1 billion.

• Duty-free business has entered a stable growth phase, with ongoing travel industry growth leading to improved profit margins and higher profit contributions.

Financial highlights

• Q3 FY2025 consolidated gross sales were KRW 2,320bn, down 4.6% YoY; net sales were KRW 1,010bn, down 2.6% YoY.

• Q3 operating profit rose to KRW 73bn (+12.3% YoY), with net profit up 67.4% YoY to KRW 48bn.

• Cumulative FY2025 gross sales were KRW 7,349bn (+0.1% YoY), net sales KRW 3,189bn (+5.9% YoY), and operating profit KRW 272bn (+54.2% YoY).

• Net income attributable to owners of the parent was KRW 158.3 billion, a sharp improvement from a loss of KRW 35.9 billion in 2024.

• Cash flows from operating activities reached KRW 671.9 billion, up from KRW 469.7 billion in the prior year.

Outlook and guidance

• Foreign sales are projected to grow independently of domestic trends, with continued acceleration in tourist inflows.

• The company is pursuing new store openings in Gwangju, Busan, and Gyeongsangbuk-do by 2027–2028 to strengthen market share and competitiveness.

• The furniture manufacturing segment is expanding globally, leveraging its U.S. success model and focusing on online channels.

• Dividend policy aims for stable or increasing payouts, with a mid-term dividend of KRW 10.8 billion paid in Q3 2025.

• Duty-free division anticipates further profit margin improvements as travel demand rises.