Bonia to close more stores
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Malaysian fashion retailer Bonia will close more of its loss-making outlets next year.
But despite weak earnings, the boutique brand known for its leather goods and footwear plans to increase its advertising and promotional spending.
Pretax profit fell nearly RM26.7 million (US$6 million) for its latest financial to June 30 to RM45.93 million. Bonia cites the slowing economy in Malaysia and Singapore as the core reason.
About 10 Bonia outlets have been closed internationally this year, and group MD Albert Chiang says the group is undertaking “prudent measures” and being selective about store openings.
Bonia owns the Bonia, Carlo Rimo and Sembonia brands and has a presence in Cambodia, Indonesia, Malaysia, Myanmar, Singapore and Vietnam.
The group also owns distribution rights to Braun Buffel, Jeep, Pierre Cardin, Santa Barbara Polo and Racquet Club.
Questions & Answers
Q.What is the primary reason Bonia is closing more stores and seeing weak earnings?
What is the primary reason Bonia is closing more stores and seeing weak earnings?
Bonia cites the slowing economy in Malaysia and Singapore as the core reason for its financial performance. This economic downturn has impacted their operations and profitability, leading to strategic adjustments like store closures.
Q.Despite weak earnings and store closures, what key strategy is Bonia planning to implement next year?
Despite weak earnings and store closures, what key strategy is Bonia planning to implement next year?
Bonia plans to increase its advertising and promotional spending next year, even though it is closing loss-making outlets. This suggests a focus on brand visibility and customer engagement despite current financial challenges.
Q.What was Bonia's pretax profit for its latest financial year, and how much did it fall?
What was Bonia's pretax profit for its latest financial year, and how much did it fall?
Bonia's pretax profit for the latest financial year, ending June 30, was RM45.93 million. This figure represents a fall of nearly RM26.7 million, indicating a significant decline in profitability over the period.
Q.Which countries does Bonia operate in with its owned brands or distribution rights?
Which countries does Bonia operate in with its owned brands or distribution rights?
Bonia has a presence in Cambodia, Indonesia, Malaysia, Myanmar, Singapore, and Vietnam. The group also holds distribution rights for brands such as Braun Buffel and Pierre Cardin within these or other undisclosed markets.