Watches of Switzerland Group PLC (LSE:WOSG) shares fell 11% to 657.61p after it said the “challenging trading environment” seen in the past half-year is expected to continue into the coming six months.
For the year to 30 April 2023, there was a 25% revenue uptick to £1.5bn, with UK and Europe accounting for £890mln worth of sales, according to the company's year-end statement, though the final quarter of the year saw growth slow to 22%.
Underlying annual earnings are expected to rise to between £163mln and £167mln for the past year, up from £130mln last time as the group delivers margin expansions despite headwinds, it said.
Luxury watch revenue for the year grew by 28%, which the Rolex seller claimed was “driven by increases in average selling price and volume.”
The challenging trading environment is not expected to improve until the second half of the new financial year, it said.
“Although, as expected, the second half of the year saw a more challenging trading environment, demand remains strong and continues to exceed supply, with client registration lists continuing to grow,” said chief executive Brian Duffy.
Revenues for the upcoming year are forecasted to reach between £1.65bn and £1.7bn, growth of 8-11% on a constant currency basis, with guidance a reflection of the current visibility of supply and confirmed showroom refurbishments and openings, it said.
“We remain confident in our goals to maintain our leadership position in the UK, become the clear leader in the US, and capitalise on our growth potential in Europe,” Duffy added.