- Watches of Switzerland posted a trading update before the open
- WOSG shares gained over 3%
- Demand remained robust
Shares of Watches of Switzerland rallied over 3% Tuesday morning after the company posted earnings before the open, with sales of luxury watches rising 32% to £342 million.
The company posted group revenue of £391 million in the first quarter of fiscal 2023, up 25% from £297 million during the same period last year. The company said it benefitted from de-stocking and pent-up demand as showrooms re-opened following Covid-19 lockdowns.
While other retailers have been impacted by soaring inflation this year, luxury brands are still thriving with their customer base not seemingly dented by rising prices.
The group’s US revenue was £152 million, up 76% year-over-year, while UK revenue was £239 million, up 8%.
“The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter. Despite the well-publicised concerns about the macro-environment, demand for our products remains robust with client registration of interest lists continuing to extend,” said Brian Duffy, Chief Executive Officer of Watches of Switzerland.
Looking ahead, the company believes the strength of the luxury watch category will continue to support long-term strong sales growth. They see FY23 revenue between £1.45 billion and £1.5 billion, with adjusted EBITDA rising between 0% and 0.5%.