SINGAPORE (Feb 9): The Hour Glass reported 3Q18 earnings of $14.2 million, up 6% from $13.4 million a year ago on reduced costs and expenses.
Revenue for the quarter fell 7% to $182.9 million compared to $196 million in 3QFY17, attributable to a contraction in supply from the group’s principal partners.
Gross margin in 3Q18 was higher at 24.6% compared to 22.3% a year ago.
Total costs and expenses fell 8% to $166.9 million compared to $180.5 million a year ago, due mainly to a reduction in cost of goods sold; lower depreciation of property; plant and equipment; and lower rental expenses. These were offset in part by increased salaries and employee benefits, along with higher selling and promotion expenses.
For 9M18, revenue grew increased by 3% to $520 million to support earnings of $32.4 million for the 9M period, up 6% compared to $30.5 million in 9M17.
The Hour Glass says it expects to be profitable for the current financial year, although it remains cognisant of continued volatility in the watch sector despite improving consumer sentiment.
Shares in The Hour Glass closed 1 cent lower at 66 cents on Friday.
