Luxury watch retailer The Hour Glass has reported earnings of $85.5 million for 1HFY2023 ended September, up 35% y-o-y from $63.5 million.
Earnings per share for the period were at 12.58 cents, up 41% from 8.95 cents the year before.
The Hour Glass’ revenue was at $555.5 million for 1HFY2023, an 18% increase from $472.4 million in 1HFY2023.
Gross profit margins were at 32.4% in 1HFY2023 as compared to 29.3% in 1HFY2022. This is attributed to higher operating expenses due to increased staff costs, rental expenses and advertising and promotion activities.
Cash and cash equivalents stood at $218 million for 1HFY2023, down from $247 million in the year before. The lower cash and bank balances was mainly due to payment of dividend, share buy backs and purchase of a property in Australia, located at 171 Edward Street, Brisbane at $85.3 million during the period.
An interim dividend of 2.00 cents per ordinary share was approved for 1HFY2023, amounting to approximately $13.2 million.
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The company also paid a dividend of $40.3 million and bought back $55.3 million of its own shares in 1HFY2023.
Business outlook for the group continues to be uncertain, as the company considers the ongoing Russia-Ukraine conflict and increasingly negative economic and political uncertainties that may adversely impact consumer sentiment particularly with luxury consumers and watch buyers.
That being said, the group expects to continue to be profitable in 2HFY2023, and for the full financial year.
Shares in The Hour Glass closed at 1 cent up or 0.51% higher at $1.97 on Nov 2.
