Watches of Switzerland Q3 revenues dip

Group revenue nudged down 1% to £397m, with revenue in the UK and Europe 7% lower at £222m. The luxury watch retailer said challenging macroeconomic conditions in the UK had dented consumer spending in the luxury retail sector, impacting luxury watches and particularly non-branded jewellery, where there was an unusually high level of promotional activity.

In addition, consumers opted to allocate their discretionary spend to other categories, such as fashion, beauty, hospitality and travel.

Watches said its UK performance continues to be driven by domestic clientele, with a "minimal" return of tourist spending due to the lack of VAT-free shopping.

The performance in the US was better, however, with revenues up 8% at £175m and sales remaining strong across all regions. Watches said it was gaining market share in the "fragmented" luxury watch market there.