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(Alliance News) - Watches of Switzerland Group PLC said Monday it expects revenue growth for its current financial year, despite negative effects from the Covid-19 outbreak.
For the seven weeks to the end of March 15, revenue increased ahead of expectations by 17% year-on-year, while sales grew by 12% on a like-for-like basis.
The group said higher sales to domestic customers in the UK and US more than offset reduced trading in stores located in airports, as well as lower footfall hurting Watches of Switzerland's travel and tourism business.
For the financial year ended April 29, the watch retailer expects revenue to be between GBP809 million and GBP812 million, reflecting 14% to 15% growth from GBP798.9 million the year before.
Due to accelerated containment measures adopted by several governments, Watches of Switzerland closed its store portfolios in the US on Thursday last week and in the UK with effect on Monday.
Within the current environment, the group has moved to reduce its working capital, delay capital projects, and eliminate discretionary expenses.
"Our priority is the health and wellbeing of our colleagues and customers during these unprecedented times. We are taking the necessary steps to mitigate and minimise the impact of this crisis on our business. We are anticipating a continuation of the store closures into our new financial year which begins on 27 April 2020," said Chief Executive Officer Brian Duffy.
"We remain confident in the strong fundamentals that underpin the luxury watch category including its great value preservation. Demand remains strong and we anticipate that this will be the case when the market returns to more normal conditions," Duffy added.
Shares in Watches of Switzerland were down 11% at 189.00 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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