Watches of Switzerland has said it is confident in its performance for the year ahead, following positive trading over the festive period.
In a trading statement for its third quarter, for the 13 weeks to 26 January, the luxury watch retailer said it had witnessed “further stabilisation” of the market across the UK in the form of a strong Christmas performance.
Watches of Switzerland also attributed the US market as the core driver of revenue during its second quarter, with sales rising 24% to £355m.
The retailer said demand for its key luxury brands remained strong over Q3, outstripping supply across both the UK and US markets.
“Given our trading performance over the first nine months of the fiscal year, visibility of supply in both markets, certainty on the timing of key showroom openings, and expectations of new product launches, we remain confident in delivering our 2024-25 guidance,” said a Watches of Switzerland spokesperson.
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The update comes after the retailer faced challenges in recent years, as the cost of living dampened demand for luxury spending.
In December, the business reported its profits had fallen despite strong US demand.
The brand’s adjusted EBIT dropped 9% to £66m in the 26 weeks to October 27, due to acquisition-related costs and integration efforts.
However, it saw a 4% year-on-year rise in group revenue to £785m in its first half, driven by strong growth in the US market.
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