Watches of Switzerland Group PLC (LSE:WOSG) shares gained as much as 6% in early trades following the release of the luxury timepiece retailer’s trading update for the first quarter of the 2024 financial year.
Group revenues fell 2% to £382 million year on year, matching stated forecasts.
Luxury watch sales, which account for 88% of total revenue, fell 2% to £336 million, while luxury jewellery sales fell 15% year on year.
Growth in the US market was pronounced, with revenues of £163 million representing 7% year-on-year growth.
In comparison, combined Europe and UK revenues of £219 million represented an 8% decline.
Watches of Switzerland retained its full-year guidance “with a return to more normalised growth in the balance of the financial year where we will maintain performance against softer comparatives”.
Total revenues are expected to come in somewhere between £1.65 billion and £1.7 billon, representing 8-11% growth (on a constant-currency basis).
Following this morning’s 6% surge to 740p, shares retracted to 700p flat, representing a 3% gain against Wednesday’s closing price.