Watches of Switzerland recorded a two per cent decline in sales in the opening quarter off the back of supply issues in the UK.
Sales reached £382 million ($AU761.6 million) for the three months ending 30 July. Revenue in the UK and Europe declined by eight per cent, while sales in the US improved by seven per cent.
“Looking ahead, we expect to return to more normalised growth rates in the balance of the financial year,” CEO Brian Duffy said.
“Our full-year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client registration on interest lists, and a strong pipeline of showroom openings, refurbishment, and investment as luxury-watch demand continues to outstrip supply.”
The report also acknowledged the impact of the new certified second-hand watch program, which was introduced in the US in July.
“Early performance has been encouraging as clients react positively. We are excited about this opportunity and are on track to launch our UK program in September.”
Luxury watch sales declined by two per cent and represented 88 per cent of overall revenue. Jewellery sales decreased by 15 per cent on a year-on-year comparison, with the company noting declining consumer demand.
Watches of Switzerland reported a record year of revenue for 2022, achieving sales of £1.54 billion ($AU2.94 billion) for the period that ended 30 April.
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