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.
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.
