By Laura McGuire
Watches of Switzerland has lowered earnings expectations for the year in the face of flattening demand for luxury watches.
In an update, the rolex seller said that it was bruised by “challenging macroeconomic conditions” over Christmas which impacted consumer spending in luxury retail.
It now expects revenue for the full year to be in the range of £1.53bn to £1.55bn down from a guidance of £1.65-£1.70bn.
Brian Duffy, chief executive officer, said: “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.
“I would like to thank our colleagues for continuing to provide high quality service and support to our clients against this challenging backdrop.
He added: “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.”
The firm’s results mirror that of fellow designer retailers Burberry and Mulberry who have been impacted by wealthy shoppers putting a pause on spending.
While many luxury brands have blamed the tourist tax for their ailing sales, other factors including the major slowdown within the Chinese economy has also played a significant role.
