The discontinuation of a major outlet store upon expiry of its lease, in addition to revenue lost from the vacancy of stores under renovation, had also largely impacted the group’s revenue during the half-year period.
In a Monday filing, Epicentre says its overall decline in revenue was further affected by poor retail sentiments as a result of the slowdown in the global economy.
Gross profit margin however improved to 15.76% from 9.71% in 1H17 due to better profit margin from Japan IPL Group, a beauty and wellness services provider which was acquired by Epicentre in April 2017.
See: Epicentre ventures into aesthetic salon business with $3.1mil takeover
While Epicentre expects challenges in the current operating environment to remain, the group intends to continue focusing on widening its distribution network in existing markets; enhance its operational efficiency; and monitor its operating expenses in the face of economic uncertainties and rising expenses.
Shares in Epicentre closed flat at 9.9 cents on Monday.
