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Proactive UK has moved.
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK

Retail

Watches of Switzerland expects prolonged downturn in airport traffic post-lockdown

The retailer said it has enough cash to sustain a prolonged period of dampened consumer sentiment

Watches of Switzerland Group PLC (LON:WOSG) said it expects a prolonged downturn in airport traffic post-lockdown while e-commerce and clienteling will gain importance.

The luxury watch retailer has started re-opening shops in the US and said “the experience of those colleagues and customers has been positive”.

READ: Watches of Switzerland takes revenue hit as stores to be closed for over a month

As of 13 May, the firm had £265mln available facilities with £83mln in the bank, adding it can sustain a prolonged period of dampened consumer sentiment.

In the year to 26 April, group revenue advanced 6% to £819mln, ahead of recently revised guidance, though in the 46 weeks to 15 March it jumped 16%.

Since lockdown was implemented, online sales jumped 46%.

Adjusted underlying earnings (EBITDA) are expected to come in at £75-78mln.

"The luxury goods market fundamentals remain sound with demand for luxury watches continuing to exceed supply," analysts at Shore Capital commented, adding the update was "reassuring".

Shares rose 1% to 223.7p on Thursday morning.

--Adds analyst's comment, shares--

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