Watches of Switzerland has lowered its guidance for the full year amid a challenging market for luxury timepieces.
Revenue for fiscal 2024 will now be between GBP 1.53 billion and GBP 1.55 billion ($1.94 billion and $1.97 billion), equating to growth of 2% to 3%, the retailer estimated last week. That compares to an initial forecast of 8% to 11% growth, which would have totaled between GBP 1.65 billion and GBP 1.7 billion ($2.1 billion and $2.16 billion).
The company — which offers brands including Rolex, Breitling and TAG Heuer — saw double-digit increases in its US sales during the third fiscal quarter, which ended January 28. However, the retail environment in the UK was much more challenging, it explained, particularly in the run-up to Christmas and beyond.
“The festive period was particularly volatile this year for the luxury sector, with consumers allocating [their spending] to other categories such as fashion, beauty, hospitality and travel,” said CEO Brian Duffy.
The downturn in the UK impacted a “broad range of luxury watch brands and non-branded jewelry,” added the jeweler. It expects the slowdown to continue for the remainder of the fiscal year.
The company will release its full results for the fiscal third quarter on February 8.
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Main image: A Watches of Switzerland store in Soho, New York. (Watches of Switzerland)
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