Watches of Switzerland Group PLC on Thursday reported a mild fall in revenue but said demand for luxury watches remains robust.

The Leicester, England-based watch retailer said first-quarter revenue declined slightly, though it said demand for luxury watches ‘remains robust and continues to exceed supply’.

Revenue in the 13 weeks to July 30 declined 2.3% to £382 million from £391 million a year earlier, an outcome in line with earlier guidance, the company said. Within this, US revenue grew by 7% to £163 million.

Looking ahead, Watches of Switzerland still expects annual revenue of between £1.65 billion and £1.70 billion, representing growth of 8% to 11% at constant currency. It had reported revenue of £1.54 billion for financial 2023, which ended on April 30.

‘FY24 guidance remains unchanged, with a return to more normalised growth in the balance of the financial year where we will maintain performance against softer comparatives. Our guidance does not reflect any expectation of an improvement in consumer confidence in the remainder of the financial year,’ the company said.

Watches of Switzerland shares rose 3.5% to 704.35 pence each on Thursday morning in London.

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