The fashion retail group, which operates 148 stores for global brands in Singapore, Malaysia and Indonesia, reported net profit of 3.5 million Singapore dollars (US$2.58 million) for the year ended June 30, with revenue increasing 7 percent year on year to $86.5 million.

The Singapore-listed retailer is a partner for more than 20 brands including Marc Jacobs, Lancel and Guess across the Southeast Asia region. Sales in Singapore and Malaysia (excluding exports to Indonesia) were up 6 per cent and 11 per cent, respectively. However, the company said the weakening Malaysian ringgit resulted in an exchange loss of $3 million.

“We saw a recovery in sales in the last financial year with the gradual removal of all Covid-19 restrictions,” said group CEO Douglas Benjamin. “However, with regional economies slowing down and costs continuing to rise, we remain cautious.”

The group experienced a 9 percent decline in sales during the second half of the fiscal year as consumer sentiment weakened. Operating expenses were up 10 percent to $42.9 million due to higher rents and staff costs.

FJ Benjamin added American footwear brand Cole Haan and luxury skincare brand MZ Skin to its portfolio last year. In April, it launched a multi-brand luxury retail format, Avenue On 3, in Singapore’s Paragon Shopping Centre, combining a footwear retail space, cafe, suites for beauty treatments, a champagne bar and a chocolatier.

“Initial response to Avenue On 3 has been encouraging,” Benjamin said.

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Singapore’s FJ Benjamin Posts Double-Digit Revenue Growth

As consumer demand returned, the group recorded 26 percent revenue growth to $45.7 million during the period, with sales up 18 percent in Singapore (excluding exports to Indonesia) and 42 percent in Malaysia.