SINGAPORE (Nov 13): The Hour Glass reported earnings of $13.5 million, or 3.94 cents per share, for the 2Q18 ended Sept, 26% higher than a year ago.
2Q revenue for the retailer of luxury watches came in at $174.7 million, 1% higher than a year ago.
For the 1H18 ended Sept, earnings rose 57% to $27.8 million from a year ago.
1H revenue rose 5% to $355.4 million driven by an upturn in the global specialty luxury watch retail market.
Hour Glass says engaging its customers and raising their in-boutique service experience resulted in higher rates of client satisfaction.
Gross margins improved to 24.9% from 21.7% a year ago amid tighter business controls.
Cash and cash equivalents stood at $159.8 million after making net loan repayments of $23.7 million.
Michael Tay, group managing director, says, "There has been some uplift in the global specialist luxury watch market due to improved consumer sentiment and desirability for the brands we partner with. This has provided the group a mild boost in our first half performance though we remain mindful that the market is prone to swift swings in sentiment.”
Looking ahead, the Hour Glass continues to drive its internal transformation programme centred on raising the organisational standards and deliver an improved service proposition to its customers across its network.
Barring any unforeseen circumstances, the group expects to remain profitable in FY19.
Shares in Hour Glass closed one cent lower at 62.5 cents on Tuesday before the results were released.
