The Hour Glass (AGS) H2 2025 earnings summary

Executive summary

• Revenue grew 3% year-over-year to $1.16 billion, despite a challenging luxury retail environment and weakened consumer discretionary spending.

• Profit after tax declined 14% to $136.1 million, impacted by inflationary pressures, compressed margins, and a negative $6.5 million fair value adjustment on investment properties.

• The group maintained a strong net asset value of $926.7 million, or $1.43 per share, and reduced borrowings by $29.1 million to $54.8 million.

• Interim and final dividends totaled 6.0 cents per share, amounting to $38.9 million for FY2025.

Financial highlights

• Revenue: $1,162.9 million, up from $1,129.7 million in FY2024.

• Profit before tax: $175.4 million, down from $204.6 million year-over-year.

• Profit after tax: $136.1 million, down from $157.6 million year-over-year.

• Gross margin: 30.9% (down from 32.2%); net margin: 11.7% (down from 13.9%).

• Earnings per share: 20.94 cents (down from 23.87 cents); dividend per share: 6.0 cents.

• Cash and bank balances: $178.7 million; inventories: $328.3 million; loans and borrowings: $54.8 million.

Outlook and guidance

• Management expects continued volatility in the luxury sector, with ongoing margin pressures and inventory surpluses.

• Strategic focus remains on consolidating retail networks, expanding in Oceania, and enhancing mono-brand boutique formats.

• The group is optimistic about long-term prospects in pan-Asian markets for Swiss watches.