Watches of Switzerland Group PLC on Wednesday said revenue and earnings grew throughout the last financial year, but its share price fell as the company predicted a ‘modest’ sales decline in the first quarter of the new year.

Shares in Watches of Switzerland were down 6.1% at 695.50 pence in London on Wednesday. They are down 30% over the past 12 months.

The Leicester, England-based luxury watch retailer predicted a ‘modest’ sales decline in the current quarter due to product intake timing, but expects sales to normalise in the second quarter. The company reported a ‘more challenging’ trading environment in the second half year ended April 30 and expects them to persist into the current half year, before abating in the subsequent six months.

Watches of Switzerland said revenue for the fourth quarter was £371 million, up 22% - or 18% at constant currency - from £304 million a year before. US revenue was £173 million, up 27% - 17% at constant currency - from £136 million. Revenue for the UK and Europe increased by 18% to £198 million from £168 million.

Revenue for the full financial year was £1.54 billion, up 25% - 19% at constant currency - from £1.24 billion. US revenue increased 52% - 35% at constant currency - to £653 million from £428 million. UK and Europe revenue increased by 10% to £890 million from £810 million.

Watches of Switzerland expects adjusted pre-IFRS earnings before interest and tax to be between £163 million and £167 million for financial 2023, up from £130 million the previous year. It expects adjusted post-IFRS Ebit of between £177 and £181 million, up from £144 million.

In financial 2024, Watches of Switzerland expects revenue of between £1.65 and £1.70 billion. It anticipates an adjusted Ebit margin in line with that of the previous year.

‘FY23 was another record year of revenue and profitability...demand remains strong and continues to exceed supply, with client registration lists continuing to grow,’ Chief Executive Officer Brian Duffy commented.

‘We enter FY24 significantly ahead of where we expected to be in our long range plan following two years of exceptional performance and notwithstanding the macroeconomic backdrop...We remain confident in our goals to maintain our leadership position in the UK, become the clear leader in the US, and capitalise on our growth potential in Europe.’

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