Singapore-based fashion and lifestyle retail group FJ Benjamin posted a lower net profit for the quarter to September 30 as higher expenses and slower sales hurt its bottom line.

Net profit fell 37 per cent to $2.3 million from $3.7 million a year ago while operating profit declined 45 per cent to $3.4 million from $6.3 million.

Group turnover eased two percent to $94.3 million from $96 million. North Asia, which accounts for just over a fifth of group revenue, saw turnover decline of 13 per cent due to a slump in Chinese tourist spending in Hong Kong and other markets.

“It has been a challenging quarter with the economic slowdown in North Asia affecting our timepiece business,” said FJ Benjamin CEO Nash Benjamin.

The company expects a slowdown in China and the uncertain global economic climate will continue to weigh on consumer spending. However, it will not distract it from scouring for new revenue streams.

FJ Benjamin is preparing new store openings in the coming 12 months – VNC in Indonesia and Goyard in Singapore. It will open the first VNC shoes and accessories store in Jakarta next month, followed by two more in the following 11 months.

The Goyard (a French luxury brand of luggage and handbags) store is scheduled to open in the fourth quarter of 2013 at Singapore’s Takashimaya Shopping Centre.

FJ Benjamin builds, develops and distributes international luxury and lifestyle brands across Asia. Its portfolio includes Banana Republic, Catherine Deane, Celine, Gap, Givenchy, Goyard, Guess and La Senza and its own brand Raoul.

GB