Watches of Switzerland Q1 revenue up, but warns of potential challenges in H2

Watches of Switzerland has reported revenue of 391 million pounds in the first quarter ended July 31, up 25 percent at constant currency and up 31 percent at reported rates.

Luxury watches revenue was up 32 percent to 342 million pounds, while luxury jewellery revenue grew 36 percent to 27 million pounds.

Breaking it down by geography, revenue in the UK and Europe increased by 8 percent to 239 million pounds, while revenue in the US doubled to 152 million dollars.

Chief executive Brian Duffy told investors: “The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter.

“Despite the well-publicised concerns about the macro-environment, demand for our products remains robust with client registration of interest lists continuing to extend.”

Despite the positive results, the company added that it “anticipates a potentially more challenging trading environment” in the second half of the year.

It expects full-year revenue of between 1.45 billion pounds and 1.5 billion pounds, and adjusted EBIT of between 157 million pounds and 169 million pounds.