Watches of Switzerland trading on track, Ashtead reports rise in first-half revenue

Stocks to watch

Luxury timepiece seller Watches of Switzerland said it was on track to meet annual guidance after trading for the first 18 weeks of the financial year had been in line with expectations. The company on Tuesday said demand for key luxury brands, particularly products on registration of interest lists, remained strong in both the UK and US markets, outstripping supply.

Ashtead Group reported a 7% increase in group rental revenue for the first quarter ended 31 July on Tuesday, although profits slightly declined compared to the prior year, with adjusted profit before tax at $573m. The FTSE 100 company continued its expansion in North America, adding 33 locations and investing $855m, while maintaining a net debt-to-EBITDA leverage ratio of 1.7x. It also announced chief financial officer Michael Pratt's retirement in September 2025, with former WestRock finance chief Alex Pease set to succeed him.

Newspaper round-up

Campaigners have called on the chancellor to introduce a controversial pay-per-mile road charging scheme on electric cars, warning of a £5bn “black hole” in tax revenues from motoring. In a letter to Rachel Reeves, the Campaign for Better Transport (CBT) urged her to reform vehicle taxes, with fuel duty poised to dwindle in the coming decade as petrol and diesel cars are phased out. – Guardian

Manchester has been named the “first-time buyer capital of Britain” after data revealed that those taking their first step on the property ladder accounted for 75% of home purchases made in the city with a mortgage last year. The research from the mortgage lender Halifax may also provide fresh evidence of how high house prices in London are forcing growing numbers of would-be capital dwellers to ditch that dream and look farther afield. – Guardian

London workers are returning to the office far more slowly than rivals in Paris and New York amid fears that UK productivity will suffer without rapid action. People in London spend an average of 2.7 days per week in the office, compared to 3.5 for Parisians and 3.1 for New Yorkers, according to the Centre for Cities think tank. Among firms with office directives in place, the average London employer mandates 3.1 days per week. This is behind top-performing Sydney’s four days and behind Singapore, New York, Toronto and Paris. – Telegraph

It may have started life with one shop in Swindon, but Mountain Warehouse, the high street chain whose outdoor clothing is beloved of hikers and dog walkers, is poised to take on even more of the American market after the British millionaire behind the brand bought a collapsed US rival. Mark Neale, the chief executive, founder and owner of the British chain, has struck a deal to acquire Eastern Mountain Sports (EMS) for £7.6 million, saving 100 jobs. Neale said he had been tracking the company for a “long time. EMS is such an iconic, well-established brand. I think it’s going to be a brilliant foothold for Mountain Warehouse in America. – The Times

The Qatari owners of Harrods have banked another £180 million dividend, despite a 17 per cent decline in operating profits at the world’s most famous department store. The luxury retailer is owned by Harrods Ltd, a company in turn owned by the state of Qatar via its Qatar Investment Authority sovereign wealth fund. The multi million-pound payout came after operating profit at Harrods’ parent company fell by £35 million to £167.7 million in the year to February 3, according to accounts for Harrods Group (Holding) Ltd, which are due to be filed next week. – The Times

US close

Markets on Wall Street remained closed on Monday for the Labor Day federal holiday.

They had closed in the green on Friday, with the Dow Jones Industrial Average up 0.55% at 41,563.08.

The S&P 500 added 1.01% to 5,648.40, and the Nasdaq Composite was ahead 1.13% at 17,713.62.