Watches of Switzerland backs FY guidance after 'good' holiday trading

(Sharecast News) - Watches of Switzerland backed its full-year guidance on Thursday as it said trading in the 13 weeks to 26 January was in line with its expectations. The luxury watch retailer said trading over the holiday period in the UK and US was "good", underpinning a third-quarter performance in line with its expectations.

The group said demand for its key luxury brands, particularly products on Registration of Interest lists, remains strong, outstripping supply in both the UK and US markets.

WOSG said it continues to be encouraged by the performance of its pre-owned businesses and the strong performance of the Roberto Coin brand in North America.

"Over the period, we have seen further stabilisation of the UK market in both luxury watches and jewellery, while the US market has seen continued momentum," it said. "In addition, our differentiated business model, alongside the continued investment in our showroom portfolio, has driven market share gains in both the UK and US."

It said the integration of the recent acquisitions of Hodinkee and Roberto Coin was progressing well and it is advancing a number of incremental growth plans with these businesses.

"Given our trading performance over the first nine months of the fiscal year, visibility of supply in both markets, certainty on the timing of key showroom openings, and expectations of new product launches, we remain confident in delivering our FY25 guidance," WOSG said.

Broker Shore Capital said: "Given the worsening views on the economic outlook of the UK, and a number of recent profit downgrades from retailers following a softer seasonal period, a report of good trading and maintained FY25F guidance should reassure."