Watches of Switzerland Group posts in line Q1 sales, reiterates guidance

"Looking ahead, we expect to return to more normalised growth rates in the balance of the financial year," the company's boss, Brian Duffy, said.

"Our full year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client Registration of Interest lists and strong pipeline of showroom openings, refurbishment and investment, as luxury watch demand continues to outstrip supply. We look forward to presenting our Long Range Plan update in the Autumn, which will outline our growth ambitions to FY28."

The manufacturer posted a 1% decline in revenues at constant currencies to reach £382m.

According to the company, demand for luxury watches continued to be "robust" and to exceed supply with average selling prices still increasing.

Watch sales, which accounted for 88% of the company's top line fell 2% to £336m, whilst those of luxury jewellery fell by 15% in part due to a shift to full price sales in the States.

Sales in the U.S. grew by 10% at constant currencies, while in the UK and Europe sales were impacted by the unwind of the product intake that had benefitted the previous quarter.

In the UK and Europe sales fell by 8%.

Guidance for the full 2024 financial year was for 8-11% constant currency growth on a pre-IFRS 16 basis to reach £1.6-1.7bn with earnings before interest and tax margins seen in line with FY 23.

The company did however note that it was exposed to moves in the cable exchange rate.