Hour Glass Q1 net profit falls amid tough retail environment, slower economy

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.”