Luxury-watch retailer, Watches of Switzerland Group, has reported a decrease in pretax profit for the first half of fiscal 2024. This is due to higher finance costs and an impairment of assets in its accounts. However, the company remains confident and is backing its full-year guidance.
Financial Highlights:
- Pretax profit for the half year ended Oct. 29 was £66.5 million compared with £82.7 million in the same period last year.
- Revenue slipped slightly to £761.4 million from £765.2 million.
- U.S. revenue, which accounts for approximately 43% of the group, saw an 11% increase to £328 million.
- U.K. and Europe revenue fell by 4% to £433 million, reflecting a challenging U.K. consumer environment.
For the full fiscal year, Watches of Switzerland expects to report revenue between £1.65 billion and £1.70 billion, representing an 8%-11% rise at constant currency.
Chief Executive Brian Duffy expressed confidence in the company’s performance going forward, stating, “Looking ahead, we are well positioned for a good holiday trading period… We remain on track to deliver full year guidance, with our confidence for H2 underpinned by the reopening of several high-revenue showrooms which were closed for upgrade in H1.”