Watches of Switzerland Group PLC (LSE:WOSG) shares swept to a four-month high after the retailer produced a first-half performance in the US, offset by less impressive trading in the UK.
Full-year guidance was held steady in a half-year trading statement, where CEO Brian Duffy said: "The US has been the standout performer, with sales up 20% in constant currency, driven by broad-based growth across brands and categories throughout the period."
US revenue of £409 million for the six months to 30 September was up 15% at reported rates versus the prior year, with strong luxury watch sales across brands and price points.
This included 12% growth in Roberto Coin wholesale sales, or 16% in constant currency.
UK sales were up 2%, with Duffy saying the business "performed well despite the challenges facing the UK high street".
First-half underlying profit (EBIT) is expected to come in between £66 million and £68 million, with margins down around half a percentage point versus the prior year, in line with full-year guidance.
"The luxury watch market remains stable and our results demonstrate the quality of our brand portfolio and our focus on enhancing showroom productivity and client service," said Duffy, adding that the FTSE 250-listed group is "well placed for the holiday trading period".
Analysts at Peel Hunt said "in general this is a good sales print", though UK sales growth was slightly behind their forecast.
"Overall, it was a beat on the sales line but EBIT is in line with our forecasts and last year's performance at £66-68 million.
"It is a slightly better than solid start to the year, but management is not changing guidance at this stage."
The shares rose by over 5% to 411p.