Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 27): Fashion retailer Padini Holdings Bhd’s net profit slipped 4.84% to RM54.44 million for the fourth quarter ended June 30, 2019 (4QFY19) from RM57.21 million last year due to thinner gross profit margins.

Earnings per share shrank to 8.27 sen against 8.7 sen in 4QFY18.

“The higher gross profit margin in the previous year was mainly due to the reversal of inventories written off and inventories written down,” said Padini in its filing with Bursa Malaysia.

Its quarterly revenue was, however, up 8.07% to RM516.47 million from RM477.91 million a year ago. Topline improved on the back of better sales in the existing store.

The group declared a first interim dividend of 2.5 sen per share in respect of FY20, payable on Sept 30, 2019.

For the full financial year ended June 30, 2019 (FY19), Padini’s net profit declined 10% to RM160.18 million, versus RM178.17 a year ago, despite revenue rising 6.21% to RM1.78 billion, from RM1.68 billion in the same period last year.

On prospects, Padini said the group is confident of turning in another profitable period despite the challenging economic environment and rising costs.

“The management will continue to be vigilant to the changes in the external environment and take necessary actions, including reviewing our cost structure in order to maintain long-term sustainable growth,” said Padini.

Padini’s share price closed 12 sen or 3.68% higher at RM3.38 today, valuing the company at RM2.21 billion. Over the past 12 months, the counter has fallen some 42% from RM5.87.

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