F J Benjamin narrows FY15 loss
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Retail group F J Benjamin’s net loss for the financial year ended 30 June narrowed from S$22.1 million to S$16.99 million.
Revenue slid 20 per cent year on year to S$293.41 million amid a challenging year on the back of reduced business in North Asia, currency volatility as well as lower tourist arrivals. The group rationalised its store portfolio, which caused it to incur impairment charges for store closures, early termination of leases, stock provisions and redundancies.
“While this has impacted turnover, it has yielded significant improvements in the productivity of its stores across the region,” the group said.
Loss per share came to 2.99 Singapore cents, versus a loss per share of 3.89 cents a year ago.
It said: “The group will complete its rationalisation and planned closure of two remaining stores by end December 2015. To address the shift in consumer trend and structural change in retail environment, it has also undertaken a restructuring of its in-house brand, Raoul, to improve performance on a reduced cost base.”
It expects consumer sentiment to remain muted given global economic and political uncertainty. Meanwhile, it is striving to further improve inventory management and cost efficiencies.
Questions & Answers
Q.What were the primary reasons for the reduction in F J Benjamin's revenue this financial year?
What were the primary reasons for the reduction in F J Benjamin's revenue this financial year?
Revenue declined due to reduced business in North Asia, currency volatility, and a decrease in tourist arrivals. The group also rationalised its store portfolio, which impacted turnover.
Q.What measures did F J Benjamin take to address its financial performance?
What measures did F J Benjamin take to address its financial performance?
The group rationalised its store portfolio by closing stores, incurring impairment charges. It also restructured its in-house brand, Raoul, to improve performance on a reduced cost base.
Q.What is F J Benjamin's outlook for consumer sentiment in the near future?
What is F J Benjamin's outlook for consumer sentiment in the near future?
F J Benjamin expects consumer sentiment to remain muted. This is due to ongoing global economic and political uncertainty, which may affect future spending.
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