Luxury watch retailer The Hour Glass AGS has reported earnings of $87.8 million for 2HFY2023 ended March, down 5% y-o-y.
Revenue for the same period increased by 1% to $567.5 million, a reflection of continuing demand in the specialty watch sector.
“With economic activity and consumer behaviour now returning to pre-pandemic norms, a sense of balance and moderation appears to be returning to the high-end watch industry.” says The Hour Glass managing director Michael Tay.
For the full year, the company registered earnings of $172.36 million, up 11% y-o-y, while revenue crossed the billion dollar mark for the second year running at $1.12 billion, 9% higher than the revenue recorded in FY2022.
Gross margins improved to 33.6% for FY2023 from the 32.7% reported in the preceding year.
The company recorded higher operating expenses for the full year, due to increased advertising and promotion activities. It also wrote off in full the balance of $5.5 million of goodwill arising from its acquisition of the New Zealand business unit.
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The Hour Glass expects to continue to be profitable in the next financial year. It has recommended a final dividend of 6 cents per share for FY2023.
Shares in The Hour Glass closed 2 cents lower or 0.94% down on May 25 at $2.09.
