Watches of Switzerland Group PLC (LSE:WOSG) reported a slowdown in sales growth in the second quarter as it raised its full-year guidance to reflect currency movements.
Full-year revenue is now expected to be between £1.5bn and £1.55bn, an increase from a previously estimated range of £1.45bn-£1.5bn, the watch and jewellery retailer said in a trading update.
"Our strong first-half performance underpins our full-year guidance, which we have upgraded to reflect the benefit of foreign exchange movements,” said chief executive Brian Duffy.
“Looking ahead, we remain confident in our Long Range Plan objectives, supported by a strong pipeline of expansionary projects as we continue with our strategy of investing for growth."
Sales in the 13 weeks to 30 October grew by 21% year-on-year on constant currency basis to £374mln, below the 25% rise seen in the first quarter.
Total first-half revenues climbed 23% on a constant currency basis to £756mln, with sales of luxury watches representing 87% of total revenue.
The FTSE 250-listed company said it invested in nine showrooms across the UK, US and Europe during the second quarter, including at the New Battersea Power Station in London.
Watches of Switzerland said it saw “continued strong momentum” in the US, with revenue up 60% in the first half to £311mln on a constant currency basis.
UK revenue jumped 8% at constant currency to £454mln, with the “strong” performance driven by domestic clientele, it said.
It said the strength of luxury watches and jewellery, alongside its portfolio and unique supply/demand dynamics make it confident in achieving its Long Range Plan objectives.