Watches of Switzerland reports small drop in early summer trading
Watches of Switzerland Group has reported a dip in first quarter sales as customers held back on buying luxury jewellery items.
In the 13 weeks to 30 July, group revenue declined to £382 million from £391 million a year earlier.
The group said demand for luxury watches remained robust in the period despite a sales decline of 2%. However, jewellery sales fell by 15%, which Watches of Switzerland attributed to weaker consumer confidence and a repositioning to full price sales in the US.
Giving an update on its performance by region, the group said revenue was down 8% in the UK and Europe where trading continues to be driven by a resilient domestic clientele.
However, sales in the US climbed by 10% at constant currency, and by 7% at reported rates, with growth driven by higher volumes.
Brian Duffy, Watches of Switzerland chief executive, said the performance was in line with expectations and the group has reiterated its guidance for the full year.
Duffy said: “Looking ahead, we expect to return to more normalised growth rates in the balance of the financial year. Our full year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client Registration of Interest lists and strong pipeline of showroom openings, refurbishment and investment, as luxury watch demand continues to outstrip supply.”
