SINGAPORE (Aug 7): Luxury watch retailer The Hour Glass posted 1Q20 earnings of $17.1 million, up 19% from $14.3 million for the same quarter last year.

Earnings per share for the quarter increased to 2.42 cents, from 2.03 cents in the corresponding quarter a year ago.

Total revenue increased 4% to $189.0 million for the 1Q20 ended June, from $182.1 million in 1Q19.

Gross margin improved by 2.2 percentage points to 26.6% in 1Q20, from 24.4% in 1Q19.

This was aided by an 84% drop in rental expenses to $1.2 million during the quarter, from $7.6 million a year ago.

As at end June, cash and cash equivalents stood at $190.8 million.

Consolidated net assets stood at $578.0 million, or 82 cents per share as at June 30, 2019.

In a filing to SGX on Wednesday, the group says it expects to be profitable for this financial year, despite current global economic uncertainties that may affect consumer sentiment and dampen spending on luxury goods.

Shares in Hour Glass closed half a cent higher at 79 cents on Wednesday before the results announcement.