SINGAPORE (May 28): Luxury watch retailer The Hour Glass saw its full-year earnings climb 41% to $70.4 million for the FY19 ended March, from $49.8 million a year ago.
Earnings per share rose to 9.99 cents for FY19, compared with 7.07 cents in FY18.
FY19 revenue grew 4% to $720.9 million, from $691.6 million a year ago.
The increase was largely due to positive consumer sentiment and steady growth across its regional retail network.
Gross margins improved by 2.8 percentage points to 27.0% in FY19
Share of results of associates more than doubled to $6.7 million in FY19, from $2.9 million a year ago.
As at end March, cash and cash equivalents stood at $181.0 million.
The Hour Glass has recommended a first and final dividend of 3.00 cents per share for FY19 – 50% higher than the first and final dividend of 2.00 cents per share declared a year ago.
"The group’s journey to transform itself began about three years ago and these efforts continue to bear results,” says Michael Tay, managing director of The Hour Glass.
“We have remained steadfast in our goal to tighten coordination and improve our operational effectiveness and this is reflected in our overall performance. In tandem, initiatives to tailor services to meet the needs of an increasingly sophisticated market are yielding returns,” he adds.
Moving ahead, the group says prospective shifts in global geopolitics and economics continue to cast concerns over the positivity of consumer sentiment among watch buyers.
Barring unforeseen circumstances, the groups expects to remain profitable in the next financial year.
Shares in The Hour Glass closed flat at 75 cents on Tuesday.
