SINGAPORE (Yosefardi) – F J Benjamin Holdings Ltd, Singapore’s leading fashion and lifestyle group, today announced lower net profit for its second quarter ended 31 December 2013 (2Q FY14) amid a softer retail market in Southeast Asia and a slump in demand for luxury timepieces in North Asia.
While the Group turnover improved by 8% to $104.6 million from $96.9 million last year, net profit after tax fell 53% to $0.5 million compared to $1.1 million in the same period last year. The earnings for the previous corresponding quarter (2Q FY13) included an exceptional gain of $920,000 from the sale of a leasehold property in Hong Kong. Excluding this gain, net profit for 2Q FY14 would be more than double the $0.2 million reported in 2Q FY13.
Profitability in Singapore and Malaysia were hurt by rampant industry clearance ahead and during the Christmas and year-end holiday season. Footfall in Singapore stores was generally down, partly due to the devaluations of the rupiah and ringgit which reduced spending by Indonesian and Malaysian tourists.
An upcoming new investment is the flagship store of TOM FORD, one of the world’s most coveted upscale brands, in Singapore’s Marina Bay Sands, scheduled before the end of April. It will be followed by a similar flagship store in Jakarta, Indonesia, in 2015.