Hour Glass' Q1 profit more than doubles to $14.3m

Luxury watch retailer The Hour Glass saw net profit more than double to $14.3 million for the fiscal first quarter ended June 30, up from $7 million in the same period a year ago.

Revenue for the first quarter rose by 10 per cent to $180.7 million from $164.4 million previously, as sentiment improved in some markets in the region, said The Hour Glass.

"The watch sector is experiencing better consumer sentiment, which has led to improved overall business of the group," it said. "Barring any unforeseen circumstances, the group expects to be profitable for the financial year."

Gross margin improved to 24.4 per cent from 21.2 per cent previously. This boosted profit after tax to $14.5 million - more than double the $7.1 million in the same period a year ago.

Costs of goods sold, which form the bulk of The Hour Glass' costs, rose 5 per cent for the quarter. Although staff costs - the second-largest cost - rose 20 per cent to $11.7 million, depreciation costs, finance costs and other operating expenses fell.

Earnings per share for the quarter were 2.03 cents, compared with 0.99 cent in the same period last year.

As of June 30, The Hour Glass' inventory stood at $277.8 million. Cash and cash equivalents stood at $188 million. Consolidated net assets were $523.8 million, or 74 cents per share.

The Hour Glass shares closed up one cent to 65.5 cents yesterday, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on August 02, 2018, with the headline 'Hour Glass' Q1 profit more than doubles to $14.3m'. Subscribe