Watches of Switzerland Group PLC (LSE:WOSG) is set to report lower sales tomorrow, according to Shore Capital, mainly due to delivery shifts related to Rolex in the UK.
The broker, though, is still a fan and sees trading picking up in the latter half of the year for year-on-year sales growth of 8.4%.
Luxury brands as a sector is facing subdued aspirational consumer demand in the US, impacting even major players like LVMH, Kering, and Richemont.
Demand for high-end watches is holding up, nonetheless, and ShoreCap expects WoS to maintain its growth momentum and forecast annual sales revenue will reach £1.672 billion.
Furthermore, underlying profit (EBIT) margin should be consistent with the previous fiscal year (10.7%), resulting in EBIT of £175 million.
Shares today eased 3% to 675p.