I am surprised on the weaker sale, since I saw the Courts advert almost every Saturday paper in Singapore...
(not vested)
Courts Asia’s 2Q earnings fall 76.2% on weaker sales in Singapore, Malaysia
By PC Lee / TheEdge Markets.com | November 12, 2014 : 9:12 PM MYT
SINGAPORE (Nov 12): Courts Asia Limited ( Financial Dashboard), the retailer of furniture and electrical consumer goods, said it posted 2Q FY14/15 earnings of $1.7 million, down 76.2% from $7.2 million a year ago (2Q Fy13/14).
Basic earnings per share fell to 0.31 cents from 1.28 cents correspondingly.
The decrease in bottomline came as sales fell 19.9% to $178.6 million from $222.9 million.
Singapore sales, which contributed to 68% of the group’s sales, registered a 22.9% decrease in 2Q FY14/15 compared to 2Q FY13/14.
The fall in sales was mainly due to a lacklustre retail environment and lower bulk sales from digital products. Like-for-like sales excluding bulk sales of digital products decreased by 3.9%.
Malaysia’s sales, which contributed to 32% of the Group’s sales, contracted by 12.6% due to muted consumer response during the Raya festive period and reduction of fuel subsidies have also negatively impacted consumer sentiment.
Gross profit decreased by 7.9% or $5.0 million while gross profit margin increased from 28.5% in 2Q FY13/14 to 32.7% in 2Q FY14/15.
This was mainly due to Singapore’s sales mix shifting towards electrical and furniture categories which carry a higher gross margin.
The group’s trade and other receivables increased by 5.6% from $488.2 million as at 31 March.
Courts Asia said to partially offset the muted consumer sentiment in Singapore and Malaysia, the group undertook a review of its operating costs and management structure to right-size the cost structure.
It will also continue to carefully assess opportunities that will add long-term value for shareholders.
Courts Asia ended the day 1.1% lower at 44 cents
http://www.theedgemarkets.com/sg/article...e-malaysia