Business · Companies · 1 hr ago
LS Securities Cuts Hyundai Department Store Target Price, Expects Recovery
LS Securities expects Hyundai Department Store’s third-quarter profit to fall short of market forecasts, mainly because its mattress subsidiary Zinus is losing money.
The brokerage estimates the retailer’s third-quarter net sales at 1.1364 trillion won and operating profit at 82.2 billion won, up from a year earlier.
Its department-store business is expected to keep growing, with foreign shoppers supporting sales at major outlets including The Hyundai Seoul.
The duty-free business also faced pressure because it was selling inventory bought when the won was weak, while Zinus is expected to post a 18.2 billion won operating loss.
LS Securities expects earnings to recover from the fourth quarter as duty-free costs ease and Zinus narrows its losses.
It forecasts Zinus could reach break-even, helped by a customs refund, recovering Amazon sales and lower costs after changes at its Georgia factory.
The brokerage cut its target price to 120,000 won but kept its Buy rating, and said Zinus’s restructuring could support stronger group results in 2027.
LS Securities cut its target price for Hyundai Department Store from 200,000 won to 120,000 won.
The brokerage kept its Buy rating, saying the retailer’s third-quarter operating profit was expected to fall short of market expectations because of losses at subsidiary Zinus.
LS Securities estimated third-quarter net sales of 1.1364 trillion won and operating profit of 82.2 billion won.
It expects Zinus’s losses to narrow and duty-free store costs to normalize from the fourth quarter, supporting an earnings recovery.
The brokerage said restructuring at Zinus could contribute to improved consolidated results in 2027.
- Who
- LS Securities assessed Hyundai Department Store.
- What
- It cut its target price to 120,000 won from 200,000 won and maintained its Buy rating.
- When
- The report was published on October 25, 2026; the article says LS Securities issued its assessment on October 26.
- Where
- Not stated
- Why
- Expected losses at Zinus were forecast to weigh on third-quarter results, although LS Securities expected recovery from the fourth quarter.
This story does not have two clearly opposing sides.
LS Securities said it expected Hyundai Department Store’s third-quarter results to fall short of market expectations and lowered its target price.
LS Securities expected Zinus’s losses to narrow and duty-free store costs to normalize, bringing Hyundai Department Store into an earnings recovery phase.
LS Securities expected Zinus’s restructuring effects to contribute to improved consolidated results.
- Target price
- Cut from 200,000 won to 120,000 won
- Rating
- Buy, maintained
- Third-quarter net sales estimate
- 1.1364 trillion won
- Third-quarter operating profit estimate
- 82.2 billion won
- Zinus third-quarter operating loss estimate
- 18.2 billion won
- Zinus fourth-quarter outlook
- Expected to reach around break-even
What people are saying
Zinus's delayed earnings recovery is disappointing, but this is being offset by solid profit growth in the department store business and improved profitability in duty-free stores.
In particular, consolidated results are expected to improve in 2027 as the effects of Zinus's restructuring take hold.