Fashion retailer FJ Benjamin Holdings reported a significantly larger net loss of $16.6 million for FY2025, compared to the $6.1 million loss recorded in the previous financial year ending June 2024.
The company's revenue declined 24% year-over-year to $60.46 million during the same period, attributed to the shutdown of unprofitable retail outlets and continued weakness in consumer confidence.
According to the company, the strengthening Singapore dollar has encouraged more outbound travel and overseas spending among consumers, which has further weakened domestic retail sales.
To address the challenges, FJ Benjamin implemented cost reduction measures including workforce reductions, store closures, and cuts to marketing expenditure.
The retailer highlighted that the retail industry remains under pressure from subdued consumer demand, escalating operational expenses, and heightened competition, especially in its primary markets of Singapore and Malaysia.
The company anticipates that currency fluctuations and evolving consumer spending behaviors, including increased overseas purchasing, will continue to shape market conditions.
In early September, FJ Benjamin announced its decision to discontinue its partnership with US fashion brand Guess by the end of 2025.
The company stated that given Guess's significant role in its brand portfolio, the board anticipates this brand discontinuation will materially affect the group's financial performance for the year ending June 30, 2026.
Moving forward, FJ Benjamin plans to focus on optimizing its operations to enhance operational efficiency.
The company will also actively seek new growth prospects in both retail and food & beverage sectors while exploring strategic partnerships to facilitate expansion into more cost-effective markets.
FJ Benjamin emphasized its commitment to building a brand portfolio that resonates with local consumer tastes while implementing a strategic plan centered on long-term profitability and sustainable growth.
FJ Benjamin's stock price closed at 1.2 cents on September 26, representing a 20% gain year-to-date.