// Watches of Switzerland posts strong sales and profits
// However, the retailer forecast a “modest sales decline” in the first quarter due to the strong previous year and “product intake timing”
Watches of Switzerland has hailed a “strong” full-year performance in line with guidance on Wednesday, as it reported record revenue but warned of an expected sales decline in the first quarter.
In an update for the year to 30 April, the luxury watch retailer saw group revenue rise 25% to £1.5bn.
US revenue jumped 52% to £653m, while the UK and Europe saw a 10% surged to £890m and adjusted EBIT is expected to be between £177m and £181m for the full year, up from £144m the year before.
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Luxury watches continued to perform well in the quarter, seeing a 28% rise in revenue. Jewellery, however, had a tougher time with revenue slipping 17% on 2022.
Chief executive Brian Duffy said: “FY23 was another record year of revenue and profitability, with revenue growth of 25% at reported rates and continued EBIT margin expansion.
“Although, as expected, the second half of FY23 saw a more challenging trading environment, demand remains strong and continues to exceed supply, with client registration lists continuing to grow.”
On the back of strong performances, the business noted that it is entering the 2024 financial year “significantly ahead of schedule” but warned that “the more challenging trading environment” would continue into the first half of next year.
It forecast a “modest sales decline” in the first quarter due to the strong previous year.
Across the 2024 financial year, the retailer expects revenue to grow between 8 and 11%.
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