F J Benjamin’s operating profit plunged 66% in Q2 to $876,000

On back of lacklustre sales in Singapore and Malaysia.

Fashion retailer F J Benjamin revealed that its operating profit plunged 66% year-on-year to $876,000 in the second quarter, amid lacklustre retail sales in Singapore and Malaysia.

Group turnover in 2QFY15 fell 17% to $87.1 million from $104.6 million in the previous corresponding period as retail sales in October and November in Singapore and Malaysia were hurt by significant declines in footfall into the stores by both locals and tourists.

By business segment, group turnover from the fashion business decreased by 10% to $69.2m while the timepiece business declined by 36% to $17.6 million.

Geographically, sales in Southeast Asia fell 10% to $80.9m as the retail industry in Singapore and Malaysia continued to see falling sales, contributed partly by the decline in tourist arrivals from mainland China and Indonesia.

The severe flooding in Malaysia in December also further dampened consumer spending. The fashion business in Southeast Asia fell 9% while the timepiece business decreased by 16%.

In Indonesia, business continued to fare better and registered increased sales of 5% despite the challenging trading conditions.

With the continued decline of business in North Asia, the company is in the process of downsizing its operations in both Hong Kong and Taiwan, which will be completed by 3Q15.