Department store operator Isetan (Singapore) has reported earnings of $1.25 million for 1HFY2021, a reversal from a loss of $317,000 in 1HFY2020. Revenue in the same period increased by 12.84% to $38.4 million, with both higher retail sales and rental income.
The company warns that the retail environment remains “challenging” because of the pandemic and thus retail revenue will still be negatively impacted over the coming months.
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“Nevertheless, recent announcements by the Singapore Government regarding the country's transitioning to a new normal, with Covid-19 being treated as being endemic and travel anticipated to resume by end of the year is something that the Company can look forward,”says Isetan.
Meanwhile, the company is not renewing its lease for its Parkway Parade store, which is expiring in March 2022. “Negotiation with our landlord for a further extension of the lease did not yield a positive result,” says Isetan.
There are no immediate plans to find a replacement store and will for now continue to operate at Shaw House, Tampines Mall and NEX.
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Separately, On June 11, the company appointed Savills (Singapore) to help market its property located at Wisma Atria.
Isetan (Singapore) shares last traded at $4.51.
