现代百货 我们对第二季度业绩不及预期的看法：令人失望，但不改变投资逻辑

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Hyundai Department Store

Our take on the 2Q miss: underwhelming, but not

thesis-changing

Overweight

069960.KS, 069960 KS

Price (04 Aug 26):W118,600

▼Price Target (Jun-27):W190,000

Prior (Jun-27):W220,000

HDS opened the Korea department store 2Q earnings season with a soft print, but

not necessarily a thesis-breaking one. Consolidated OP missed consensus by ~7%,

primarily due to non-core Zinus losses (-W27B, vs. JPMe -W20B). Department

store OP (W110B, up 60% y/y) was broadly in line with sell-side consensus, but

yesterday’s share price reaction (-7% vs. KOSPI’s +4%) suggests the buyside bar

was likely higher. While Zinus was clearly the key disappointment, management

sounded much more constructive than expected, indicating losses clearly troughed

in 2Q, with a stronger June exit rate, improving 3QTD momentum, and planned

cost savings supporting normalization toward year-end. That leaves monthly

SSSG as the key near-term swing factor, as investors still need better visibility on

Korea consumption amid macro volatility (KOSPI weakness, KRW appreciation).

So the question is not whether 2Q was clean (it was not), but whether this miss

changes the investment case. We do not think it does, particularly not at 6.7x 2027E

P/E, which we think already prices in a fair amount of caution after a 20% pullback

over the past two weeks (vs. KOSPI’s -3%, Shinsegae/Lotte’s -21%/-12%). Our PT

goes to W190K (old: W220K) on lower EPS (-6% for FY27E/28E), but we still see

substantial room for re-rating and stay Overweight. We see limited read-across to

peers from this print, and Shinsegae remains our top pick given its prime footprint

to capture all three demand upcycles and improving subsidiaries.

2Q OP miss on Zinus. Total consolidated net sales of W1.07T (-1% y/y) came

in line with Street consensus, with solid contributions from the department

store (9% y/y) and DFS (6% y/y) segments largely offset by Zinus weakness

(-36% y/y). 2Q consolidated OP of W79B (-9% y/y) missed Street consensus

by ~7%, with Zinus serving as the key drag — posting an operating loss of

…