The Hour Glass clocks moderate 2% rise in FY18 profit

Luxury watch retailer The Hour Glass booked relatively flat profit for the full 2018 fiscal year, despite a one-off relocation expense pegged to its Australian operations.

Profit attributable to company owners for the full year ended March 31 crept up 2 per cent to $49.82 million, from $49.7 million the year before, on the back of $691.65 million in revenue, which slipped 1 per cent from the previous corresponding period.

Operating expenses were higher on a one-time relocation expense of $1.5 million incurred by The Hour Glass Australia.

The board has declared an unchanged final dividend of two cents per share, subject to approval at its July 30 annual general meeting.

The group saw earnings per share rise to 7.07 cents from 6.91 cents last year, while net asset value per share climbed to 72 cents from 68 cents.

In fiscal 2018, the group recorded a gross margin of 24.2 per cent, up from the 22.7 per cent last year, due in part to its "ongoing business re-engineering", which also resulted in "notable improvement" in its customer service standards, the group said in an exchange filing.

  • AT A GLANCE

    REVENUE: $691.6 million (-1%)

    NET PROFIT: $49.8 million (+2%)

    DIVIDEND PER SHARE: 2 cents (unchanged)

Fluctuation in the demand for luxury watches means the group has to stay "agile and tuned to the marketplace", said The Hour Glass co-group managing director Michael Tay.

Looking ahead, the group believes consumer sentiment is expected to stay at current levels.

It will continue to operate its 38 boutiques in 10 cities throughout the Asia-Pacific region, while improving its retail network, brand portfolio and customer engagement and experience, the group said.

Shares of The Hour Glass ended unchanged yesterday at 65.5 cents. The results were announced after market close.

A version of this article appeared in the print edition of The Straits Times on May 23, 2018, with the headline 'The Hour Glass clocks moderate 2% rise in FY18 profit'. Print Edition | Subscribe