Magazines Archives - 2009 March

CK Tang records marked fall in operational losses
Story 8 - News

BETTER revenue turnover, coupled with controlled financing and staff cost, has allowed Singapore retailer CK Tang Limited, which operates the TANGS stores, to reduce its losses for the third quarter of its fiscal year ended December 2008.

Its financial statement for the three months had registered a net loss of S$145,000 (US$94,863), which was a 73.2% improvement over the S$541,000 loss the group had posted for the period the year before. Turnover for the quarter rose 8.2% to S$68.766 million from S$63.569 million previously.

“Group turnover for the quarter was achieved despite weak consumer demand, with many countries going into recession as well as lower tourist arrivals. All TANGS stores in Singapore and Malaysia contributed to the increase in turnover,” the company stated without citing reasons for the improvement.

The company also reported an 11.7% hike in marketing expenses to S$8.3 million from S$7.4 million, and slightly higher purchases and related expenses of S$44.9 million, up from S$43.1 million year on year.

However, its borrowing costs fell 34.3% to S$746,000 from S$1.13 million. “The decrease in financial expenses was attributable to lower interest rates despite higher borrowings,” CK Tang explained.

Meanwhile, staff costs were reined in at S$6.14 million, compared with the previous year’s S$6.34 million. Anticipating a difficult year ahead, the retailer resolved to keep up its cost control and sales growth.

“There is still uncertainty regarding the extent and duration of the current global economic crisis, [which has] resulted in lower tourist arrivals, [with the] adverse impact on the retail sector in Singapore and Malaysia expected to continue for some time. The group will take all possible measures, including more active sales promotions and cost reductions to minimise the negative impact on the group’s performance,” it stated.

CK Tang operates department stores and provides general merchandising services in Singapore and Malaysia. Its other businesses include foodcatering, running F&B outlets, maintaining and owning property and investment holdings. The group retails merchandise under its own brands such as Tangs Studio and Tangs Studio Shoes, as well as those of Island Shop, SEED, Versace, BCBG Maxazria and French Connection UK.

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