Hour Glass Q1 net profit falls amid tough retail environment, slower economy
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The Hour Glass’ first-quarter net profit tumbled 22 per cent year on year to S$8.19 million.
For the three months ended June 30, total revenue and other income fell 7 per cent to S$149.43 million from the previous year. The decline in revenue reflected the economic slowdown and tougher regional competition, it said.
Q1 earnings per share slid to 1.16 Singapore cents from 1.49 Singapore cents in the preceding year.
For the quarter, gross margin edged up to 22.9 per cent from 22.8 per cent a year ago.
Meanwhile, rental costs were higher due to the expanded retail network.
The Hour Glass said: “The continuing global economic uncertainty is expected to affect consumer sentiment and the demand for watches and luxury goods. Barring any unforeseen circumstances, the group expects to remain profitable for the financial year.”
Questions & Answers
Q.What was the main financial performance of The Hour Glass in the first quarter?
What was the main financial performance of The Hour Glass in the first quarter?
The Hour Glass' net profit for the first quarter fell 22 per cent year on year to S$8.19 million, with total revenue and other income decreasing 7 per cent to S$149.43 million.
Q.What reasons did The Hour Glass give for the fall in revenue?
What reasons did The Hour Glass give for the fall in revenue?
The decline in revenue reflected the economic slowdown and tougher regional competition. Higher rental costs also contributed, due to the expanded retail network.
Q.What is the company's outlook for the financial year?
What is the company's outlook for the financial year?
The Hour Glass expects continuing global economic uncertainty to affect consumer sentiment and demand. However, it anticipates remaining profitable for the financial year, barring unforeseen circumstances.
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