KUALA LUMPUR (Feb 21): Parkson Holdings Bhd (KL:PARKSON) fell deeper into the red in the fourth quarter ended Dec 31, 2024 (4QFY2024), as its financials were dragged by a heftier impairment loss compared with in the corresponding quarter in 2023.

The department store operator reported net loss of RM127.73 million in 4QFY2024, compared with a net loss of RM61.42 million in 4QFY2023, as it recorded RM190.24 million impairment loss on assets, mainly related to underperforming stores in China.

This compares to the RM89.93 mil impairment loss booked in 4QFY2023. The losses translate into a loss per share (LPS) of 11.12 sen, compared with an LPS of 5.35 sen in 4QFY2023.

The closure of one of its stores in China, as well as overall weaker consumer sentiment led to 9.1% lower revenue for Parkson during the quarter, at RM693.83 million, compared with RM763.39 million previously.

The number of Parkson stores in Malaysia stood unchanged at 37, while stores in China fell to 41 from 42.

For the financial year ended Dec 31, 2024 (FY2024), Parkson’s net loss enlarged to RM102.46 million as compared to RM19.19 million in FY2023, while revenue fell 10.2% to RM2.81 billion versus RM3.12 billion previously.

LPS increased to 8.92 sen per share in FY2024, compared with 1.67 sen in FY2023.

Retained profits fell to RM672.03 million as at end-December 2024 from RM774.49 million a year ago.  

Looking to FY2025, Parkson said amid growing diversity in consumer demands and increasing industry competition in China, the group remains focused on its core business and operational innovation to stay agile and competitive.

“Additionally, the group is actively seeking strategic business expansion to seize growth opportunities in markets where the group has an established presence,” it said.

Domestically, Parkson said the group continues to navigate ongoing challenges posed by inflationary pressures and rising cost of living, affecting consumer sentiment and spending power.

“To address these challenges, the group will continue to rationalise its operations, enhance store productivity, improve operational efficiencies, and manage costs in order to strengthen and sustain its performance,” it added.

Shares in Parkson ended unchanged at 18 sen on Friday, valuing the group at RM206.8 million.