Revenue at Watches of Switzerland slipped in the first fiscal quarter as a drop in available product supply in the UK outweighed a strong US performance.
Group sales dipped 2% year on year to GBP 382 million ($484.8 million) in the three months ending July 30, the UK-based company reported last week. Revenue in the UK and Europe fell 8% to GBP 219 million ($278 million) because Watches of Switzerland had access to fewer goods than in the same period last year, it explained. Sales in the US increased 7% to GBP 163 million ($206.9 million) as demand grew and the company opened new stores.
The retailer also saw benefit from the launch of a new certified pre-owned watch program, which it debuted in the US in July, it noted.
“We…successfully launched the Rolex Certified Pre-owned program in the US,” said Watches of Switzerland CEO Brian Duffy. “Early performance has been encouraging as clients react positively. We are excited about this opportunity and are on track to launch our UK…program in September.”
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Luxury-watch sales fell 2% to GBP 336 million ($426.5 million), representing 88% of overall revenue. Sales of jewelry dropped 15% year on year amid dulled consumer sentiment and a repositioning in the US to full-price sales, the company noted.
Watches of Switzerland maintained its annual sales forecast of GBP 1.65 billion to GBP 1.7 billion ($2.09 billion to $2.16 billion). The fiscal year runs through April 2024.
“Looking ahead, we expect to return to more normalized growth rates in the balance of the financial year,” Duffy added. “Our full-year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client registration on interest lists, and strong pipeline of showroom openings, refurbishment, and investment as luxury-watch demand continues to outstrip supply.”
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Main image: A Watches of Switzerland store in Soho, New York. (Watches of Switzerland)
