Courts struggles in “weak” setting
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Singapore-based electronics and homewares retailer Courts has reported a quarterly revenue dip of 16.four per cent in what it describes as a “weak retail surroundings”.
The listed firm posted a quarterly revenue of S$6.56 million within the three months to March 31, down from $7.84 million in the identical interval a yr in the past.
Gross sales for the quarter fell seven per cent to S$192.5 million and for the yr to March 31, income fell a pointy 38.7 per cent to S$17.36 million, on gross sales down eight.6 per cent to S$758.5 million.
“Singapore’s gross sales, which contributed to 66 per cent of the group’s gross sales, registered 11 per cent lower in FY14/15,” the corporate stated in a press release.
“The lower in gross sales was primarily because of a lacklustre retail surroundings resulting in the autumn in gross sales of all product classes, decrease bulk gross sales of digital merchandise and lowered participation in commerce present days,” Courts stated.
Malaysia accounted for 33 per cent of group gross sales, however fell by 5.eight per cent largely because of the weaker ringgit and regardless of some panic shopping for earlier than the introduction of gross sales tax on April 1.
However the firm expressed optimism for the yr forward.
Two new shops are quickly to open in Indonesia, its latest market, offering essential mass to realize operational effectivity.
Courts additionally plans to launch right into a fourth market with Singapore media tipping Mauritius because the most certainly risk.
Questions & Answers
Q.What is Courts' primary explanation for the decline in sales across all product categories?
What is Courts' primary explanation for the decline in sales across all product categories?
The company primarily attributed the sales decline to a lacklustre retail environment and reduced participation in trade show days, alongside lower bulk sales of electronic products.
Q.How much of Courts' group sales were contributed by Singapore, and by what percentage did these sales decrease?
How much of Courts' group sales were contributed by Singapore, and by what percentage did these sales decrease?
Singapore contributed 66 per cent of the group's sales, and these sales registered an 11 per cent decrease in FY14/15.
Q.What are Courts' plans for expansion into new markets, and which specific new market is being considered?
What are Courts' plans for expansion into new markets, and which specific new market is being considered?
Courts plans to open two new stores in Indonesia and aims to launch into a fourth market, with Singapore media suggesting Mauritius as the most likely possibility.
Q.How did the introduction of sales tax affect Courts' performance in Malaysia?
How did the introduction of sales tax affect Courts' performance in Malaysia?
Malaysia's sales fell by 5.8 per cent, largely due to a weaker ringgit, despite some panic buying before the sales tax introduction on April 1.
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