By Najat Kantouar
Luxury-watch retailer, Watches of Switzerland Group, has announced a decrease in revenue for the third quarter of fiscal 2024. The company attributes this decline to the increased volatility in luxury demand in the U.K. They have also reiterated their downgraded guidance.
According to their report on Thursday, the group’s revenue for the thirteen weeks leading up to January 28th fell to £397 million ($501.3 million), compared to £407 million from the same period the previous year.
The group’s ecommerce revenue saw a 15% decline compared to the previous year, largely due to the mix of products available through this channel and the weak performance of the U.K. market.
Breaking it down regionally, watches of Switzerland reported an 8% increase in revenue from the U.S. market, amounting to £175 million at constant currency rates. This growth is a result of strong client demand. On the other hand, both U.K. and Europe revenue saw a 7% decrease, totaling £222 million. The company attributes this decline to slower demand for luxury discretionary purchases, particularly in the U.K.
Despite these challenges, Watches of Switzerland Group is standing by its guidance for the year ending in April. They had previously revised their targets in January. The full-year revenue is expected to be between £1.53 billion and £1.55 billion.