Watch retailer Cortina
Cortina’s revenue for 1HFY2024 was also down 3.8% y-o-y to $391.3 million, while its cost of purchasing goods and consumables stayed flat at $287.9 million for the period.
The drop in earnings and revenue was attributed to economic uncertainties resulting from rising interest rates, the weakening of some Southeast Asian currencies against the Singdollar, as well as operational disruptions from the expansion and renovation of outlets in Malaysia and Thailand.
The company recorded a lower gross profit of $34.0 million for the first half year of FY2024 compared with $41.3 million in the corresponding period last year, a decrease of $7.3 million or 17.7%.
However, the company’s sales margin improved to 33.3% in 1HFY2024, compared to 32.7% in the previous corresponding period.
Its cash and cash equivalents stood at $103.1 million as at Sept 30.
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The company has proceeded with its expansion plans in the region with both Cortina Watch and Sincere, to be completed in the next 12 months. Cortina Watch has grown from one to four boutiques in HK, and renovated and expanded its stores in Singapore and Thailand. Meanwhile, Sincere Watch has expanded its Sincere Haute Horlogerie concept in Thailand and Malaysia and continues to renovate its multi-label stores.
“We are in a challenging environment of exchange rate volatility, a rise in inflation, high interest rates and expansion expenses. However, barring unforeseen circumstances, the group will remain profitable," says Cortina in its earnings commentary.
Shares in Cortina closed flat at $3.50 on Nov 14.
