Watches of Switzerland Group PLC has doubled down on full-year guidance as the UK luxury market further stabilises and US momentum continues.
Trading had been “good” over the holiday period, the retailer said on Tuesday, leaving performance during the third quarter to January 26 in line with expectations.
Demand had remained strong and outstripped supply in both the UK and US, including as investment in showrooms helped to drive market share gains, it added.
“Over the period, we have seen further stabilisation of the UK market in both luxury watches and jewellery, while the US market has seen continued momentum.”
Guidance for revenue growth of 9% to 12% to between £1.67 billion and £1.73 billion was held as a result, with profit margins seen expanding by 0.2 to 0.6 percentage points.
Recent acquisitions of Hodinkee and Roberto Coin were said to have progressed well, with a new £150 million facility taken after the latter increasing liquidity headroom.
Plans were also laid out for Rolex agencies to be rolled out to relocated showrooms across the US over the coming quarter, as a new flagship boutique opened on London’s Old Bond Street.