SINGAPORE (Aug 2): The Hour Glass has announced earnings of $14.3 million for the 1Q ended June, doubling from its 1Q18 earnings of $7 million due to improved margins and higher revenue.
Revenue for the quarter grew 10% on-year to $180.7 million from $164.4 million in 1Q18. The luxury watch retailer attributes this to improved sentiment in selective markets in the region.
Meanwhile, gross margin improved to 24.4% compared to 21.2% in the same quarter a year ago.
Total costs and expense rose 5% to $164.9 million from $157.4 million, as costs of goods, salaries & employee benefits, selling & promotion expenses and rental expenses and grew.
These were however offset in part by lower depreciation of property, plant & equipment, other operating expense, as well as finance costs.
During the quarter, the group also registered a foreign exchange (forex) gain of $0.35 million compared to a loss of $0.2 million a year ago.
As at end-June, cash and cash equivalents stood at $188 million while consolidated net assets were $523.8 million or 74 cents per share.
Noting how the watch sector is experience better consumer sentiment, which has led to an improvement in the group’s overall business, The Hour Glass says it expects to be profitable in the current financial year.
Shares in The Hour Glass closed 1 cent lower at 66 cents on Wednesday.
