- WOSG expects to post 2025 revenues of roughly £1.7bn next year
Watches of Switzerland revealed it was ‘on track’ to meet expectation for the 2025 financial year amid a recovery in demand for luxury watches and jewellery.
The luxury retailer and UK’s biggest seller of Rolex, revealed that ‘trading for the first 18 weeks of the financial year has been ‘in line’ with expectations.
The FTSE 250 firm, which has 221 showrooms across the UK, US and Europe, said that it has ‘seen continued stabilisation of the UK market in both luxury watches and jewellery’.
The luxury retailer, which is the UK’s biggest seller of Rolex, revealed that ‘trading for the first 18 weeks of the financial year has been ‘in line’ with expectations
Following the update, Watches of Switzerland shares rose 4.78 per cent to 394.4p in afternoon trading on Tuesday.
WOSG expects to post 2025 revenues of roughly £1.7billion next year, reflecting constant currency growth of 9 to 12 per cent, and an earnings margin expansion of 0.2 to 0.6 percentage points.
The news comes as a welcome boost to the Leicestershire-based company, which has seen its stock plunge by around 40 per cent so far in 2024.
The past year’s geopolitical tensions, a slowing global economy and persistent inflation has contributed to a squeeze on consumers’ spending power.
As a result, luxury brands have been hit with a demand slowdown as even the wealthy struggled to cope with high costs.
The effects of this were were evident in the June trading update, where the group said that sales fell after ‘significant price increases’.
The firm’s UK and Europe sales were down 5 per cent in the 52 weeks ended 28 April to £846million, despite market share gains, which it said reflected ‘macroeconomic conditions in the UK’.
The company reported a 40 per cent drop in its statutory pre-tax profit to £92million over the same period.
Profitability was hit by a ‘lack of leverage and the headwinds of interest free credit costs’, boss Brian Duffy said, while UK demand continued to lag its pandemic-era strength.
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