HK-listed gold stocks jump as US economic fears boost bullion prices
Investing.com - Watches Of Switzerland Group PLC (LON:WOSG) has said its trading performance over the key holiday shopping period was "good" in both the U.S. and UK, keeping the luxury watch retailer on track to meet its full-year 2025 guidance.
"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 [fiscal year 2025] guidance," the company said in a trading update on Thursday.
The group has guided for revenue of between 1.67 billion to 1.73 billion, translating to growth of 9% to 12% at constant currency. Adjusted earnings before interest and tax margin is also seen increasing by 0.2 to 0.6 percentage points compared to the prior fiscal year.
For the 13 weeks ended on January 26, Watches of Switzerland said demand for the luxury brands that it sells -- such as Rolex, Cartier and Patek Philippe -- "remains strong", adding that it has been "outstripping supply in both the UK and U.S. markets".
In particular, the market for luxury watches and jewellery in Britain has stabilized, while there is "continued momentum" in the U.S., thanks in part to ongoing investments in the firm’s showrooms. In the second quarter, the U.S. was a major source of sales for Watches of Switzerland, rising by 24% to 355 million pounds.
Analysts have been eyeing a possible rebound in the luxury sector as cost-of-living pressures that previously squeezed spending on high-priced items eases. These hopes were somewhat bolstered by surge in sales at Cartier-owner Richemont (SIX:CFR) and British luxury house Burberry (LON:BRBY), while Louis Vuitton-parent LVMH (EPA:LVMH) said it has made a good start to the year.
Shares in Watches of Switzerland were hovering just below the flatline in mid-morning London dealmaking on Thursday.