Hour Glass reports 10% drop in net profit in FY16

RETAILER The Hour Glass saw a 10 per cent slide in net profit to S$52.32 million for the full year ended March 31, 2016, in line with lower revenue.

Total revenue and other income was 4 per cent lower at S$714.03 million, while earnings per share fell to 7.42 Singapore cents, down from 8.22 cents a year ago.

"Uncertainty in the global economic outlook has impaired overall sentiment affecting discretionary consumption and in particular, the luxury and specialty watch sector. We anticipate a tightening of global demand for luxury goods and a rebalancing of supply to these new market conditions," said the group.

During the financial year, the group also made a S$5 million donation to advance special needs, community and cultural causes in Singapore in conjunction with Singapore's 50th Anniversary.

A dividend of two cents per share has been proposed.

Barring any unforeseen circumstances, the group remains cautiously optimistic and expects to remain profitable for the next financial year, it said.