SINGAPORE (Aug 14): Luxury watch retailer The Hour Glass Group announced earnings of $7 million for the 1Q18 ended June, down 15% from $8.2 million posted in 1H17 on higher expenses which were largely attributable to a one-time relocation cost.
Revenue for 1Q18 grew 11% to $164.4 million from $148.2 million a year ago, which the group says reflects improved consumer sentiment in selective markets in the region.
Total costs and expenses, however, grew 13% to $157.4 million from $139.6 million a year ago mainly due to a 67% increase in other operating expenses to $4 million from $2.4 million in the previous year.
This included a one-time relocation expense of $1.5 million incurred by The Hour Glass Australia, according to the group, which led to the lower topline.
As such, the group’s gross margin for the quarter came in at 21.2%, down from 22.9% in 1Q17.
Cash and cash equivalents stood at $112.2 million as at end-June, whereas group inventory was $316.2 million.
In its outlook, Hour Glass says that while the global watch sector continues to remain challenging, the group expects to be profitable for the current financial year.
Shares in Hour Glass closed 0.8% lower at 64 cents on Monday.
