Retailer FJ Benjamin Holdings' FY2025 net loss has widened to $16.6 million from $6.1 million in the preceding year ended June 2024.
Revenue in the same period was down 24% y-o-y to $60.46 million, due partly to the closure of non-profitable stores, as well as persistently weak consumer sentiment.
"A strong Singapore dollar further contributed to increased outbound travel and overseas spending, dampening domestic retail demand," the company says.
The company managed to cut costs via a combination of reducing headcount, closing stores, reduce marketing and so on.
FJ Benjamin says that the retail sector continues to face headwinds amid weak consumer demand, rising operating costs and intensifying competition, particularly in its key markets of Singapore and Malaysia.
Currency volatility and the ongoing shift in consumer spending patterns, including increased overseas purchases, are expected to continue influencing market dynamics.
On Sept 5, FJ Benjamin announced that it will stop carrying Guess, a US fashion brand by end of 2025.
"Given that Guess is a significant brand within the group’s portfolio, the board expects that the anticipated cessation of this brand relationship will have a material impact on the group’s performance for the financial year ending June 30 2026," says FJ Benjamin.
FJ Benjamin says it will place its emphasis on right-sizing its operations to improve operational efficiency.
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It will also actively pursue new growth opportunities across both retail and food & beverage segments and explore strategic collaborations to support expansion into more cost-efficient markets.
"Going forward, the group remains committed to curating a portfolio of brands aligned with local consumer preferences, while executing a strategic roadmap focused on long-term profitability and sustainable growth," says FJ Benjamin.
FJ Benjamin shares closed at 1.2 cents on Sept 26, up 20% year to date.
