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The Hour Glass sees 26% uptick in Q2 earnings despite flat revenue growth
LUXURY watch retailer The Hour Glass has reported a net profit of S$13.5 million for the second quarter, 26 per cent higher than S$10.7 million in the corresponding period a year ago.
This translated to earnings per share of 1.92 Singapore cents, up from 1.52 Singapore cents year-on-year.
Revenue came in at S$174.7 million for the three months ended September, or a one per cent improvement over last year's S$173 million.
First-half profit rose 57 per cent from S$17.7 million to S$27.8 million, despite a much smaller increase - 5 per cent - in revenue over the same period. Higher profit was achieved because gross margins improved from 21.7 per cent to 24.9 per cent "amidst tighter business controls".
Earnings per share for the half year increased from 2.51 Singapore cents to 3.94 Singapore cents.
The Hour Glass' group managing director Michael Tay said in a results announcement statement: "There has been some uplift in the global specialist luxury watch market due to improved consumer sentiment and desirability for the brands we partner with. This has provided the group a mild boost in our first half performance though we remain mindful that the market is prone to swift swings in sentiment.”
The watch sector continues to remain challenging in the midst of global economic uncertainties. Barring any unforeseen circumstances, The Hour Glass expects to be profitable for the financial year, the group said.
The Hour Glass closed one Singapore cent lower at 62.5 Singapore cents before the results were released.