SINGAPORE - Luxury watch retailer The Hour Glass has clocked in a 5 per cent drop in first quarter net profit to $8.4 million.

Revenue for the three months to June 30 inched up 2 per cent to $157 million.

Gross margin was lower at 20.7 per cent, compared to 21.6 per cent in the same period last year, due to a more competitive retail environment.

Operating expenses were higher resulting from rental and depreciation expenses.

As at June 30, group inventory was $293.8 million while cash and cash equivalents were $84.3 million.

Earnings per share eased to 3.56 cents from 3.75 cents previously.

Net asset value per share firmed to $1.59 compared to $1.56 as at March 31.

Looking ahead, Hour Glass noted that the global economic and political uncertainty is expected to continue and affect consumer sentiment and the demand for watches and luxury goods.

It expects to remain profitable for the full year.