SINGAPORE — The Hour Glass, a prominent luxury watch retailer, has announced a deal to acquire SPV, an Australian watch retailer, for A$90 million (approximately S$72.4 million). The transaction, revealed on April 7, will see SPV become a wholly owned subsidiary of The Hour Glass’ Australian unit.
SPV, which primarily sells watches and related products, is expected to enhance The Hour Glass’ retail operations in Australia. This acquisition aligns with the company’s long-term strategy of expanding its presence in the Australian market. Additionally, the move is anticipated to bring operational synergies and increase the customer base for the business.
The deal is expected to positively impact The Hour Glass’ financial performance. For the financial year 2024, the group’s earnings per share would be 25.21 cents, up from 23.87 cents, assuming the acquisition was completed on April 1, 2023.
The acquisition is expected to be finalized in the first half of the financial year ending March 31, 2026. The purchase will be financed through internal funds and bank loans.
In November 2024, The Hour Glass reported a 20% decline in earnings to S$61.4 million for the first half of FY2025, down from S$77 million the previous year. Higher operating expenses, including increased advertising and depreciation costs, were cited as factors behind the drop in profitability.
As of the midday trading break, shares of The Hour Glass fell by 3.9%, reaching S$1.49. The broader Straits Times Index also saw a decline, dropping 8.1% amid a global market downturn.
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