KUALA LUMPUR (Aug 27): Garment manufacturer Padini Holdings Bhd (KL:PADINI) posted a 73.5% year-on-year drop in net profit for the fourth quarter ended June 30, 2025 (4QFY2025), dragged by lower revenue and same-store sales growth contraction.

The net profit of RM6.98 million for the quarter, compared with RM26.31 million a year earlier, is the lowest for the company in 16 years, since 4QFY2009.  

Earnings per share fell to 0.71 sen from 2.67 sen, according to the group in a filing on Wednesday.

The company said same-store sales growth — a measure of sales growth from existing stores — fell 16.6% year-on-year.

Revenue for the quarter was down 13.9% year-on-year to RM392.10 million from RM455.17 million.

For the full year, Padini posted a 5.6% rise in net profit to RM154.79 million from RM146.60 million in FY2024, as the gross profit margin improved to 39% from 36%.

Full-year revenue, meanwhile, edged up 1% to a record high of RM1.94 billion from RM1.92 billion.

Padini did not declare any dividend for the latest quarter. Including earlier payouts, the full-year dividend amounted to 9.6 sen per share, down from 11.5 sen in FY2024.

However, the group proceeded to announce its first interim dividend for FY2026. The dividend of 1.8 sen per share will be paid on Sept 30.

Padini said its retail operations, primarily driven by local festive and school holiday cycles, remain exposed to fluctuating consumer demand.

The group said purchasing power deterioration from rising costs, inflation, and interest rates continued to weigh on the retail landscape.

“Despite these potential challenges, we are optimistic that the group will perform satisfactorily for the current financial year,” it said, adding that it will focus on cost control, operational streamlining and preserving its cash flow.

Padini’s shares settled down three sen or 1.46% at RM2.08 on Wednesday, valuing the group at RM2.05 billion.