SINGAPORE (Nov 7): The Hour Glass has reported a 29% rise in 2Q18 earnings to $10.7 million from $8.3 million in 2Q17.
The retailer of luxury watches says improved consumer sentiment in selective markets in the region and the pickup in overall economic activity in key markets contributed to the group’s gains, says The Hour Glass, suggesting that luxury brands still have room for growth despite current challenging business conditions.
Revenue for the three months to Sept rose 6% to $173 million. Gross margin was 22.2%, up from 21.4% a year ago. Profit after tax was $10.9 million, an increase of 27% compared to 2Q17.
Hour Glass says the group’s performance for the period under review is in line with the prospect statement in the results announcement for the 1Q18 ended June 30.
Although the global watch sector continues to remain challenging, Hour Glass expects to be profitable for the financial year, barring any unforeseen circumstances.
Michael Tay, co-group managing director of The Hour Glass says: “The underlying economic mood turned positive in the past few months and this contributed to improved performance for the group. While it is hard to predict sustainable trends in a market that can be prone to swift changes, we continue to remain agile and vigilant in ensuring that we stand ready to meet the new demands of our business.”
Shares in Hour Glass closed at 67 cents on Tuesday.
