Strong retail sales boost Padini Holdings Q1 earnings

Padini, a leader in the multibillion textile and garment industry in Malaysia, has reported 8.13 growth in its net profit for the first quarter of the financial year at RM27.37 million as against RM25.31 million in the same period last year, in line with expectations, accounting for 29.7 per cent of its 2014 financial year estimates.

Meanwhile, total revenue of the retail chain operator rose by 22.69 per cent as revenue reached RM217.22 million in the first quarter of the current financial year from RM177.03 million in the same period a year ago.

Commenting on earnings, Padini said the improvement in its revenue was driven primarily by an increase in exports as well as by the strong performance achieved by its stores.

Riding high on hopes of strong brand position in the global market, the company has opened two stores, a Padini Concept Store and a Brands Outlet store in the first quarter of 2014 financial year. Covering a total gross floor area of 50,421 square feet, these new stores have further strengthened its brands’ presence in Penang and should allow it to better capitalize on the additional tourist arrivals projected to arrive in conjunction with the 2014 Visit Malaysia Year.

Maintaining bullish approach over the Group’s prospect for the rest of the financial year, Padini slated to open an additional 3 Brands Outlet stores and 2 more Padini Concept Stores in Pulau Langkawi, Seremban and Miri in the next two months.

Padini Group, which has nine labels in its family of brands, witnessed improvement in revenues across all sectors, except for the Padini label, over that recorded during the previous quarter and as a result, profit before taxation rose a significant 78.8 per cent quarter-on-quarter, primarily driven by the Hari Raya and the Merdeka Day promotions.

Fibre2fashion News Desk - India