The latest set of results comes after a major shareholder proposed to take Isetan private
JAPANESE retailer Isetan Singapore recorded a net loss of S$126,000 for the six months ended June, narrower than the loss of S$681,000 in the same period last year, it announced on Friday (Aug 2).
However, revenue was down 8.9 per cent S$37.4 million, due to lower sales of goods and consignment income from the retail segment. This was partly offset by higher rental income from the Isetan Wisma Atria investment property.
The retailer’s total costs stood at S$40.5 million, 9.1 per cent lower than the year-ago period. Employee compensation was down 4.8 per cent due to higher government grants, while purchases of inventories and related costs fell 14 per cent with lower stock loss.
The latest set of results comes after Japan’s Isetan Mitsukoshi, a major shareholder of Isetan Singapore, in April proposed to take the retailer private at S$7.20 per share. Isetan Singapore last traded unchanged at S$7.08 on Friday.
Looking ahead, Isetan Singapore said that despite the positive macroeconomic factors in Singapore, it “continues to face challenges in maintaining the recovery momentum post pandemic, particularly for its retail business”.
“In addition, outbound travel due to the strong currency may encourage some of our customers to increase discretionary spending overseas instead of in Singapore,” the company said.
It cited “sustained high operating costs” as another challenge as it strives to achieve profitability in the retail segment.
Nevertheless, one bright spot is in the property segment. As announced in April, Isetan Singapore had executed a new lease for part of the Havelock Road office building it owns. The lease is conditional on the tenant securing the necessary approvals from the authorities.
“Should the tenancy proceed, this will be positive for the company’s property segment,” said Isetan Singapore.
