Parkson counting on festive season to lift sales

PETALING JAYA: Parkson Holdings Bhd has recorded a net loss of RM6.22mil for the third quarter of this year, on the back of a lower revenue of RM560.73mil.

In comparison with the same quarter last year, the department store chain posted a net profit of RM7.27mil and revenue of RM584.94mil.

In a filing with Bursa Malaysia, Parkson said the decrease was mainly due to lower revenue from its retailing segment in Malaysia, which came in at RM9.17mil.

“The decline was mainly attributable to cautious and selective consumer spending due to inflationary pressures, the rising cost of living and ongoing economic uncertainty,” the group said.

The overall sales performance of the group was weighed down by weaker sales in China, mainly due to lower shopper traffic in the absence of major festivities and continued soft consumer sentiment there.

The group said profits were higher in its immediate preceding quarter because it included a one-off income of RM37mil arising from a lease modification.

Parkson said it believes the year-end festivities and holiday season will drive higher shopper traffic across its department stores and deliver an encouraging operating performance.

“The group remains focused on implementing strategies to enhance sales productivity and strengthen gross margins, while continuing its efforts to rationalise operations and exercise prudent cost control, in line with its commitment to improving overall performance,” Parkson said.

The group did not declare any dividend for the quarter under review and posted a loss per share of 54 sen.