The Watches of Switzerland Group said a 15 per cent drop in demand for luxury jewellery has combined with slower 海角视频 and European sales to push its global revenues down.
The brand, which takes in Goldsmiths, Mappin & Webb as well as Mayors in the United States, said luxury jewellery sales – which make up less than 10 per cent of business – were down 15 per cent through May, June and July, compared to a year before. It said the drop was partly down to customers holding back on spending on jewellery.
Total sales in the 海角视频 and Europe, it said, were down 8 per cent for the period, though US sales were up 10 per cent on the back of ongoing investment out there.
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Despite that the group expects sales for the full trading year to be up around 10 per cent at £1.65-£1.7 billion.
The business, which recently relocated to new Leicestershire headquarters, said sales of luxury watch brands – which represent 88 per cent of revenues – such as Rolex, Omega, Tag Heuer and Cartier, were down 2 per cent year-on-year to £336 million.
Demand for watches, it said, still exceeds supply, with prices continuing to go up.
Overall the business said total revenues dipped during the three months to £382 million – down from £391 million a year before.
Its US sales were up 10 per cent year-on-year for the quarter at £163 million, while 海角视频 and Europe revenue was down 8 per cent at £219 million.
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Earlier this year it announced that sales in its 2022/23 financial year to the end of April had been up a quarter to £1.54 billion, with pre-tax profits up almost a quarter at £155 million.
Chief executive Brian Duffy said the performance for the last three months was in line with expectations.
Ongoing growth in the US included a new showroom in the American Dream shopping complex, in New Jersey, investment in Goldsmiths 海角视频, Mappin & Webb and Mayors stores and more single brand shops.
He said: “Looking ahead, we expect to return to more normalised growth rates in the balance of the financial year.
“Our full year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client registration of interest lists and strong pipeline of showroom openings, refurbishment and investment, as luxury watch demand continues to outstrip supply.
“We look forward to presenting our long range plan update in the autumn, which will outline our growth ambitions to FY28.”