Fewer outlets but profit up for Time Watch

While its retail network shrank, first-half revenue and profits all grew for Time Watch Investments.

Sales for the six months to the end of December increased by about 6.1 per cent to about HK$1.4 billion (US$178.8 million), gross profit was up about 13.2 per cent to about $1 billion, and gross profit margin increased from about 64.7 per cent to about 69 per cent.

Profit attributable to owners of the company reached about $146.2 million, an increase of about 44.1 per cent.

Meanwhile, the group had 26 fewer points of sale at the end of December than at the end of June, its retail network decreasing to 3067 outlets.

The Tian Wang business continued to be the group’s main source of revenue, accounting for about 71.5 per cent of total revenue, up from about 65.5 per cent for the same period a year ago. Revenue grew by about 15.8 per cent to about $1 billion, while the retail network gained to extra outlets to reach 25671 points of sale at the end of December.

Retail sales increased about 4.3 per cent, with significant growth through e-commerce channels – up 62.8 per cent to about $301.3 million.

Revenue for the Balco watch business decreased 7.6 per cent to about $63.5 million, accounting for about 4.3 per cent of the group’s total revenue (down from 4.9 per cent).

Sales in Mainland China fell by 7.5 per cent to about $47.9 million. Sales to multi-brand watch distributors in Hong Kong, Macau and Taiwan fell 8.2 per cent to about $15.6 million.

Retail sales of other watches brands fell by 8.7 per cent to about $110.5 million, accounting for 7.4 per cent of the total revenue (down from 8.6 per cent).

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