Watches of Switzerland Group Plc said it sees signs of stability in the premium and luxury watch market in the UK after a post-Covid slump dented sales.
The top seller of Rolex watches in Britain said pressure on demand for expensive timepieces suffered in 2024 is starting to wane.
The retailer said UK and Europe sales fell 5% in its fiscal 2024 as consumer confidence was hit by shaky economic growth, high interest rates and conflicts in Ukraine and the Middle East. The company said it sees these pressures easing.
Adjusted Ebitda fell 11% to £179 million ($226 million) for the year ended April as US stores and sales of used Rolex watches outperformed. That topped consensus analyst estimates of £175 million.
The company’s shares have fallen more than 40% this year on concerns it could lose market share after Rolex bought rival watch retailer Bucherer AG, marking the top Swiss brand’s first significant move into selling its own products.
The company said sales of used watches, including Rolex models under the Swiss watchmaking giant’s “certified pre-owned” program, doubled in the period from the prior year and are now its second-biggest source of revenue.
Watches of Switzerland warned earlier this year that sales and profit would be weaker than anticipated as it wasn’t allocated as many gold and other precious metal watches from Rolex and as UK consumers turned more cautious.
The company reiterated its 2025 forecast as well as a long-term target of more than doubling sales and earnings before interest and taxes by 2028.