Luxury watch retailer The Hour Glass reported earnings of $29.7 million for the 1HFY2021 ended September, down 15% from $35.0 million a year ago.
This brings earnings per share (EPS) to 4.22 cents for the half-year period, lower than the 4.96 cents posted a year ago.
Total revenue fell 24% y-o-y to $289.8 million, mainly due to the disruption in business operations from Covid-19.
Gross margin fell 0.6 percentage points to 26.2% for the quarter, from 26.8% the year before.
During the half-year period, the group saw a reduction in operating expenses due to the implementation of cost containment measures.
The introduction of government support schemes for wage costs and rental rebates from landlords also contributed to the reduced expenses.
As at Sept 30, cash and cash equivalents stood at $206.9 million. Consolidated net assets were $635.1 million or 90 cents per share.
For the 1HFY2021, the board of directors has approved an interim dividend of 2 cents per share, payable on Nov 27.
“The Covid-19 pandemic has led to unprecedented global economic uncertainties. The Group’s retail operations and its financial results may be adversely impacted by business disruptions,” it says in an SGX statement on Nov 5.
“The Group has practised financial prudence by continuing to generate positive cash flow and maintain strong cash reserves. The full impact of the Covid-19 outbreak is difficult to quantify at this juncture,” it adds.
Shares in The Hour Glass closed flat at 68 cents on Nov 5.
