SINGAPORE (Feb 9): Luxury watch retailer The Hour Glass saw its earnings fall by 8% to $13.4 million for the third quarter ended 31 Dec, mainly due to higher costs.
Revenue for the quarter grew 5% to $196 million from $186.4 million a year ago.
This was more than offset by higher total costs and expenses, which increased by 6% in 3Q17 to $180.5 million from $170.9 million in 3Q16 – largely attributable to a 9% increase in cost of goods sold for the current quarter to $152.2 million.
At the same time, rental costs grew 135 to $7.9 million from $7 million in the preceding year.
Operating expenses, however, were lower than the previous period primarily due to a reduction in staff costs and the absence of the one-time charitable donation.
The group registered a lower gross margin of 22.3% compared to 24.9% in 3Q16.
Earnings per share (EPS) for 3Q17 fell $1.90 from $2.06 in the previous year.
While the group notes uncertainties in the global economy which continue to impact consumer sentiment and discretionary spending, it nevertheless expects to remain profitable for the current financial year.
Shares of The Hour Glass closed 1 cent higher at 64 cents on Thursday.
