(Alliance News) - Watches of Switzerland Group PLC on Thursday reported a double-digit rise in quarterly revenue, driven by demand for luxury watches, and reiterated its full-year guidance.
Watches of Switzerland is a Leicester, England-based luxury watch retailer.
Shares were down 13% at 876.50 pence each on Thursday morning in London.
The company reported double-digit growth in its financial third quarter ended January 29, as revenue rose 17% year-on-year to GBP407 million from GBP348 million. This was driven by luxury watches, "where demand continues to exceed supply", it said.
In the US, revenue rose by 36% to GBP169 million from GBP125 million a year earlier. In UK & Europe, revenue was also up, rising to GBP238 million from GBP223 million a year earlier.
The firm said it remains confident of delivering long-term growth.
Chief Executive Officer Brian Duffy reported that the firm's expansion into Europe is seeing "positive" early trading.
"I am pleased with our strong third quarter performance which is testament to our continued investment in leading showroom design, the strength of our brand partnerships, our scale, our dedication to omni-channel excellence, and our exceptional client service. 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," Duffy said.
For the whole of financial 2023, Watches expects to bring in revenue of GBP1.50 billion to GBP1.55 billion, with adjusted earnings before interest and tax to be between GBP163 million to GBP175 million. The guidance is on a pre-IFRS 16 basis, with a constant exchange rate applied to the fourth quarter.
Back in December, Watches reported revenue of GBP765 million for the six months that ended on October 30, up 31% from GBP586 million the previous year. Total pretax profit rose 28% to GBP83 million from GBP65 million.
By Xindi Wei, Alliance News reporter
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