The British luxury watch retailer Watches of Switzerland Group Plc has revised its forecasts for the current 2023/24 financial year downwards after disappointing Christmas business.
The company said on Thursday that business development suffered in the run-up to Christmas and after the festive season as “difficult macroeconomic conditions influenced consumer spending in the luxury sector”. Management also expects that the adverse situation will persist until the end of the financial year.
Given the bleak outlook, the retailer cut its 2023/24 sales forecast, which had previously been between £1.65 billion and £1.70 billion, to between £1.53 billion and £1.55 billion Euro). The earnings target was also cut: While the company previously expected to achieve an EBIT margin in the same range as the previous year of 10.7 percent, it now only expects it to be 8.7 to 8.9 percent.