SINGAPORE: Fashion and lifestyle group FJ Benjamin on Friday (Feb 12) reported a S$3.7 million group net loss for the three months ended Dec 31, 2015.
This is compared to a net profit of S$1.2 million in the same period a year ago.
The group's turnover in Q2 of FY2016 declined by 19 per cent, or S$16.2 million, from the previous corresponding period to S$70.9 million, it said, which it attributed to the closure of non-performing stores, discontinued business and the weakening Malaysian Ringgit.
“With the decline in tourist arrivals from Indonesia, Malaysia and China into Singapore, together with the slowing economies and currency volatility in the region, this further weakened consumer sentiment,” said Mr Nash Benjamin, chief executive officer of FJ Benjamin.
He added that the company's rationalisation programme "continues to positively affect business productivity". "Group operating expenses were lowered by more than 23 per cent, improving our cost-to-revenue ratio from 46 per cent to 43 per cent," he said.
Looking ahead, Mr Benjamin said the group expects the retail sector in Singapore, Malaysia and Indonesia to remain challenging in the mid-term amid an uncertain global economic backdrop. However the company has taken steps in the past two years to rationalise the business, he said, and is "better positioned to weather these difficult times."
FJ Benjamin retails and distributes brands such as Guess, Swarovski, Loewe, and Raoul across various territories.