KUALA LUMPUR (Aug 27): Padini Holdings Bhd (KL:PADINI) on Thursday reported its first quarterly net loss in five years, weighed by weaker sales and higher operating costs.
The fashion retailer recorded a net loss of RM9.64 million for the fourth quarter ended June 30, 2026 (4QFY2026) compared to a net profit of RM6.98 million in the same period last year. Revenue fell 6.7% to RM365.94 million from RM392.1 million.
In a filing with Bursa Malaysia, Padini said earnings were hit by increased depreciation and lease-related expenses, as well as service tax imposed on rental and other expenses following the expansion of the sales and service tax scope on July 1, 2025.
For the full financial year, Padini’s net profit fell 27.3% to RM112.6 million from RM154.8 million in FY2025, while revenue declined 3.2% to RM1.88 billion from RM1.94 billion.
Despite the weaker performance, the company declared a first interim dividend of 1.8 sen per share for FY2027, payable on Sept 30.
Padini was in the news earlier this year after announcing on April 24 that 21 of its bank accounts had been frozen by the Malaysian Anti-Corruption Commission in connection with an investigation involving external parties. On July 16, the company disclosed that the accounts were released by the MACC.
On its prospects, Padini said it expects the retail environment to remain challenging amid higher living costs, trade tensions, inflation and interest rates, which could affect consumer purchasing power.
“Despite these potential challenges, we are optimistic that the group will perform satisfactorily for the current financial year. Management will continue to provide value for money products and implementing measures to control costs, optimise working capital, preserve cash and streamline the operations to minimise any adverse impacts,” the company said in the filing.
Padini’s shares closed down three sen or 2.2% at RM1.34 on Thursday, giving the company a market capitalisation of RM1.32 billion.