Shares of TheHourGlass (AGS.SI), a leading specialist watch retailer, soared 3.36% in Thursday's trading session, outperforming the broader market. The company, which operates 65 boutiques across 14 cities, has demonstrated resilience in the face of recent market challenges.
The stock's upward movement comes as investors appear to be recognizing TheHourGlass's strong position in the luxury timepiece industry. The company's focus on high-end Swiss watch brands such as Rolex, Hublot, Chopard, Patek Philippe, and Cartier may be shielding it from broader economic concerns. Luxury watches, with their typically high price tags, are often less sensitive to economic fluctuations, which could be contributing to investor confidence in the company's prospects.
Despite a slight dip in revenue and profits in the first half of fiscal 2025, TheHourGlass has maintained a healthy free cash flow and kept its interim dividend stable at S$0.02 per share. The company's recent acquisition of an Australian company for around A$90 million to expand its presence in Australia and strengthen its retail footprint may also be viewed positively by investors. This strategic move, coupled with the company's strong market position in Southeast Asia and North Asia, suggests that TheHourGlass is well-positioned for future growth, potentially driving the stock's performance.
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