18 January 2024 , 11:14
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Shares in Watches of Switzerland took a nosedive today after it reduced its yearly outlook, citing "no recovery in consumer demand".
The company trimmed down revenue growth forecasts from 8-11% to 2-3% and said that the revenue could be up to £170 million less than initially expected. Its forecast for the earnings margin was also reduced from aligning with last year's 10.7% to a new guidance of 8.7-8.9%. In response to this news, shares have seen a dramatic fall, dropping by as much as a third.
Brian Duffy, the Chief Executive, commented: "The festive period was particularly volatile this year for the luxury sector, with consumers allocating spend to other categories such as fashion, beauty, hospitality and travel. Whilst we are disappointed with this trend, we are encouraged by our market share gains in both the US and UK."
In appreciation of his team, he stated: "I would like to thank our colleagues for continuing to provide high quality service and support to our clients against this challenging backdrop. We remain confident in the markets in which we operate, our model and the delivery of our long-range plan announced to the market in November 2023."
A company spokesperson said the tough circumstances seen during Christmas will stick around for their remaining financial year: "The UK was more challenged and this impacted a broad range of luxury watch brands and non-branded jewellery."
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