The Hour Glass' H1 earnings slips 15% to S$29.7m

LUXURY watch retailer The Hour Glass has reported earnings of S$29.7 million between April and September, a decline of 15 per cent compared to the same period last year, the mainboard-listed company said on Thursday evening.

The company's performance for the first half of its financial year comes after it clocked its best performance to date for the previous financial year ended March 31, 2020.

Revenue for H1 FY21 fell 24 per cent to S$289.8 million, which the group attributed to disruption caused by the Covid-19 pandemic.

Gross margin was 26.2 per cent, comparable to the 26.8 per cent seen during the same period last year. The company said operating expenses were reduced as a result of the implementation of cost containment measures, while government support schemes for wage costs and rental rebates from landlords contributed to the reduced expenses.

Earnings per share fell to 4.22 Singapore cents, compared with 4.96 Singapore cents over the same period last year. Net asset value per share for the group as at Sept 30 was S$0.90, compared with S$0.86 as at March 31.

Given the uncertainty of the pandemic, the company said its retail operations and financial results may be adversely affected by business disruptions, adding that the full impact of Covid-19 is "difficult to quantify at this juncture".

The counter closed flat at 68 Singapore cents on Thursday.