Parkson Retail Asia reports fiscal 1Q net loss narrowed

Parkson Retail Asia department store in Ho Chi Minh City, VietnamParkson Retail Asia department store in Ho Chi Minh City, Vietnam

Parkson Retail Asia reported Thursday its fiscal first quarter net loss narrowed to S$9.73 million, from S$11.13 million in the year-ago period as a lower store count lowered expenses.

Revenue for the quarter ended 30 September fell 14.5 percent on-year to S$79.21 million, the department store operator said in a filing to SGX.

Total expenses for the quarter fell 12.6 percent on-year to S$91.50 million on changes in merchandise inventories and consumables due to lower revenue and a lower store count, Parkson Retail Asia said.

Staff costs fell 10 percent on-year as the lower store count led to a reduction in headcount, the filing said.

The company posted a tax credit for the quarter of S$1.68 million, compared with a year-earlier tax expense of S$23,000.

Malaysia’s same-store sales fell 1.3 percent on-year on softer retail sentiment, the company said.

Vietnam’s same-store sales dropped 14.3 percent on-year as the country’s retail scene was “very competitive” and as a major store was undergoing renovation, impacting its sales, the filing said.

Indonesia’s same-store sales declined 7.7 percent on-year, mainly due to earthquakes dampening tourists’ confidence in traveling to Indonesia, the company said.

“In addition, one of the malls where a store operated, underwent renovation work while one of the other stores reduced its size, both
of which have impacted the stores’ sales,” Parkson Retail Asia said.

In its outlook, Parkson Retail Asia said it expected the operating environment to remain challenging, with “severe competition.”

“Much emphasis will be placed on cost containment, improving productivity and increasing revenue by carrying out tactical advertising & promotional activities. The Group will continue to focus on enhancing product offerings as well as optimising operational efficiency/productivity to further improve the results,” the company said.

The company has 61 stores across Malaysia, Vietnam and Indonesia as of end-September.

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