FJ Benjamin’s net loss narrows to $17 million
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Despite a drop in revenue, Singapore luxury retailer FJ Benjamin’s net loss for its latest fiscal year has narrowed to S$17.42 million (US$12.7 million) from $22.96 million.
Turnover slipped 18 per cent to $207.49 million mainly because of discontinued businesses and a drop in sales to an Indonesian associate. However, the gross profit margin improved to 42 per cent from 39 per cent a year ago thanks to tighter inventory management and improved sell-throughs, says the group.
“Management expects the operating environment to remain challenging in Singapore as economic growth stays sluggish and the Singapore dollar continues to strengthen relative to regional currencies.
“While management is conscious of the challenges and will remain vigilant on costs, we will continue to identify new business opportunities that will enhance the group’s portfolio and help the group return to profitability.”
FJ Benjamin Holdings offers brand building and management, and develops retail and distribution networks for international luxury and lifestyle brands across Asia. It has offices in eight cities, manages more than 20 brands and has 226 stores.
According to its website, it exclusively retails and distributes brands such as Banana Republic, Celine, Gap, Givenchy, Guess, La Senza, Loewe, Sheridan, Superdry and Tom Ford. Its retail footprint includes Southeast Asia and Hong Kong.
It also distributes timepieces for such brands as Bell & Ross, ChronoSwiss, Frederique Constant, Guess, Nautica and Victorinox Swiss Army.
Questions & Answers
Q.What is the primary reason given for the decline in FJ Benjamin's turnover?
What is the primary reason given for the decline in FJ Benjamin's turnover?
The turnover slipped mainly due to discontinued businesses. A drop in sales to an Indonesian associate also contributed to the decrease in revenue for the luxury retailer during the fiscal year.
Q.How did FJ Benjamin manage to improve its gross profit margin despite lower revenue?
How did FJ Benjamin manage to improve its gross profit margin despite lower revenue?
The group improved its gross profit margin through tighter inventory management. Enhanced sell-throughs also played a role in increasing the margin from 39 per cent to 42 per cent.
Q.What challenges does management anticipate for the operating environment in Singapore?
What challenges does management anticipate for the operating environment in Singapore?
Management expects the operating environment to remain challenging due to sluggish economic growth in Singapore. The continued strengthening of the Singapore dollar relative to regional currencies also presents difficulties.
Q.Which well-known brands does FJ Benjamin exclusively retail and distribute?
Which well-known brands does FJ Benjamin exclusively retail and distribute?
FJ Benjamin exclusively retails and distributes brands such as Banana Republic, Celine, Gap, Givenchy, and Guess. Other brands include La Senza, Loewe, Sheridan, Superdry, and Tom Ford across its network.
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