Isetan Singapore reported Wednesday a second quarter net profit of S$40,000, swinging from a year-ago net loss of S$1.39 million as expenses fell.
Revenue for the quarter ended 30 June fell 5.95 percent on-year to S$27.05 million on lower sales of goods and lower consignment income from the retail segment, the department store operator said in a filing to SGX.
That was partly offset by higher rental income from the property segment, Isetan said.
Total expenses declined 7.95 percent on-year to S$29.06 million in the quarter, the filing said.
Employee compensation fell 7.59 percent on-year to S$4.19 million as the number of full-time staff fell, Isetan said.
The depreciation expense climbed to S$5.96 million, more than tripling from S$1.71 million in the year-ago quarter on changes to accounting for leases, the filing said.
In its outlook, Isetan pointed to cuts to the economic growth outlook in Singapore.
“The retail environment remains very challenging for the company,” Isetan said. “The Isetan Scotts renovation project is on track to be completed in 2020. The company remains cautiously optimistic that the project will contribute positively towards the revenue of the company upon completion.”
It added that the expiry date of its store lease at Westgate mall was extended to 22 March 2020 from 22 December 2019.
Isetan had said in May it wouldn’t be renewing the lease at Westgate mall, saying it wasn’t able to reach an agreement that would be favorable to the money-losing store.
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