Isetan sinks into the red with net loss of $317k in first half

Isetan's revenue fell 39.6 per cent to $34 million.
Isetan's revenue fell 39.6 per cent to $34 million.ST PHOTO: GIN TAY

The battered retail sector has claimed another casualty with Japanese department store operator Isetan Singapore sinking into the red for the half year.

It racked up a net loss of $317,000 for the three months to June 30, compared with a net profit of $1.6 million in the same period a year earlier.

This was mainly due to a decline in sales as well as impairment losses on financial assets, the company said on Thursday.

Loss per share stood at 0.77 cent for the six months versus earnings per share of 3.82 cents a year earlier.

Revenue fell 39.6 per cent to $34 million, due to lower sales of goods from the retail segment, reduced consignment income and declining rental income from its Isetan Wisma Atria investment property.

The decrease was mainly due to the closure of department stores from April 7 to June 18, the impact the pandemic had on the retail industry and discontinued operations for its Jurong East store in March, noted Isetan.

No dividend was declared, unchanged from last year.

Isetan said the retail environment remains "very challenging" and that a material recovery is not expected this year.

Nonetheless, the Isetan Scotts renovation project is on track for completion this year, and the firm remains "cautiously optimistic" that this will contribute to its revenue upon completion.

Isetan shares closed unchanged at $2.96 yesterday.

THE BUSINESS TIMES

 
A version of this article appeared in the print edition of The Straits Times on August 15, 2020, with the headline 'Isetan sinks into the red with net loss of $317k in first half'. Print Edition | Subscribe