THE Hour Glass posted a 20 per cent fall in H1 FY2025 ended Sept 30 earnings to S$61.4 million from S$77 million the year before.
In a bourse filing on Tuesday (Nov 12), the luxury watch retailer reported a 3 per cent fall in H1 FY2025 revenue to S$540.3 million from S$558.4 million in H1 FY2024.
Gross margin for the first half of FY2025 was also slightly lower at 30.7 per cent compared to 30.9 per cent in the first half of FY2024.
Higher operating expenses also dragged profitability, with increased advertising and promotional activities, depreciation of right-of-use assets and loss on disposal of property, plant and equipment driving expenses up.
Advertising and promotional activities rose 11 per cent from S$17.7 million in H1 FY2024 to S$19.6 million in H1 FY2025.
The board of directors declared an interim dividend of S$0.02 per share for the H1 FY2025 period. This will amount to about S$12.96 million, and will be paid on Dec 4, with the book closure at 5pm on Nov 25.
The company noted that the global luxury and specialty watch sector has been undergoing a reset amid macroeconomic uncertainties and geopolitical tensions. This has dampened consumer sentiment towards luxury watches, The Hour Glass’ core business.
Despite the challenging environment, the company expects to remain profitable for FY2025.
Shares of The Hour Glass closed up 0.7 per cent or S$0.01 at S$1.54 on Tuesday.
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