Oriental Watch (398) H2 2026 earnings summary

Executive summary

• Revenue declined 0.8% year-over-year to HK$3,423 million amid challenging luxury market conditions in Greater China, with profit attributable to owners down 10% to HK$180 million.

• Gross profit margin slightly decreased to 31.1% from 31.5% year-over-year, reflecting pressure on discretionary luxury spending.

• Adjusted profit, excluding a one-off HK$20 million loss on disposal of a joint venture, was HK$200 million, flat year-over-year.

• Total dividends for the year amounted to 37.1 HK cents per share, representing a payout ratio of 100.4%.

Financial highlights

• Turnover: HK$3,423 million, down 0.8% year-over-year.

• Profit attributable to owners: HK$180 million, down 10% year-over-year.

• Earnings per share: 36.95 HK cents (2025: 41.14 HK cents).

• Gross profit: HK$1,064 million, gross margin 31.1%.

• Cash and cash equivalents: HK$950 million as of 31 March 2026.

Outlook and guidance

• Macroeconomic headwinds and subdued consumer confidence expected to persist, keeping luxury watch demand fragile.

• Focus remains on expanding boutique network, deepening brand partnerships, and targeting affluent Chinese Mainland consumers.

• Continued cost discipline and service quality enhancement to strengthen competitive positioning.