Watches of Switzerland falls short of expectations amid Christmas strikes
It maintained its guidance for full-year revenues of £1.5 to £1.55b, but it's share price was down 11% by early afternoon trading on Thursday in London
Watches of Switzerland has reported that its revenues increased 17% to £407m in the 13 weeks to January 29 this year, narrowly falling short of analysts’ consensus expectations of £425m.
The company said its lower than expected sales growth was because of rail and postal strikes over Christmas and general worries about the economic environment.
It maintained its guidance for full-year revenues of £1.5bn to £1.55bn, but it’s share price was down 11% by early afternoon trading on Thursday in London.
The group, which also includes UK jewellery chain Goldsmiths and Mayors in the US, said luxury watch sales grew 22% in the period.
The group also said luxury jewellery sales, roughly a tenth of its revenue for the quarter, fell 2% year on year.
Brian Duffy, chief executive officer, said: “I am pleased with our strong Q3 performance which is testament to our continued investment in leading showroom design, the strength of our brand partnerships, our scale, our dedication to omnichannel excellence, and our exceptional client service.
“I would like to thank all my colleagues for their ongoing dedication and hard work especially during the Holiday period. Demand remains strong and continues to exceed supply, with client registration lists growing. We exited the quarter with good momentum and are pleased to reiterate our full year guidance.”
He added: “Our expansion into Europe continued with the opening of our fifth mono-brand boutique, with OMEGA in Stockholm in the third quarter. Early trading remains positive, and we are excited to open our first mono-brand boutique in Dublin with TAG Heuer later this month.
“Looking ahead, we remain confident that our strategy will further enhance our leadership position as we continue to deliver on our Long Range Plan objectives.”
