SINGAPORE (May 26): Luxury watch retailer Cortina Holdings saw 4Q earnings almost treble to $3.8 million from $1.4 million a year ago. Full-year earnings came in 41% higher at $11.8 million.
Cortina says the stronger performance was largely attributable to higher revenue and good sales mix. Revenue for the quarter was $106.1 million, 13.4% higher compared with the corresponding period last year. The increase in revenue arose from expansion in the group's retail network, notably Singapore, Taiwan and Thailand. Full-year revenue came in 6% higher at $390.8 million.
Sales margin remained steady at 22.8% for the quarter and the full year.
Quarterly operating expenses, which comprised staff cost, rental expense, depreciation and other expenses, increased by 3.6% to $18.7 million. The increase was largely due to higher marketing expenses for opening of new boutiques and higher rental expenses resulting from expansion.
Cash and bank balances stood at $21.8 million at end March, compared with $17.3 million a year ago.
Trade and other receivables were higher by $0.8 million at $9 million.
Cortina says the global economic slowdown will continue to pose challenges to its performance in the years ahead and will continue to review and realign its strategies to adapt to the changes and emerging risks in the industry and in the markets that it operates in.
The group is planning several refurbishments and relocation in the group's retail network to further attract customers from emerging market.
Shares of Cortina closed 5 cents higher at 82.5 cents.