(Alliance News) - Watches of Switzerland Group PLC on Tuesday hailed growth opportunities in the UK, US and Europe as it reported an improved second-quarter, despite a "difficult consumer environment".
The Leicester-based retailer of Swiss watches said revenue in the second-quarter to October 29, rose around 1.3% to GBP379 million from GBP374 million.
It said luxury watch demand "remains robust". For the full half-year, revenue was down around 0.5% year-on-year to GBP761 million.
Notably, revenue in the US rose 4% at reported rates year-on-year to GBP165 million, while UK and Europe revenue was in line with a year prior at GBP214 million.
For the current financial year 2024 ending April 30, the company still predicted full-year constant currency revenue growth of 8% to 11%.
For financial 2015 to 2023, the company's compound annual growth rate for revenue was 19%, with adjusted earnings before interest and tax CAGR up 44%.
Between financial 2023 and financial 2028, the company targets sales to more than double from its financial 2023 base of GBP1.54 billion adding that UK and US growth was ahead of market. It aims for US revenue CAGR growth of 20% to 25% until financial 2028, UK revenue CAGR growth of 8% to 10%. Further, it anticipates Europe to be 4% to 6% of group sales in financial 2028.
Chief Executive Officer Brian Duffy said: "Today's long range plan demonstrates our confidence in more than doubling our sales and profits from FY23 to FY28, aiming to surpass the milestone of GBP3 billion in revenue whilst driving operational leverage and accelerating new showroom projects and mergers & acquisitions activity."
Watches of Switzerland shares rose 7.9% to CHF560.00 each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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Watches Switz (WOSG)