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(Alliance News) - Watches of Switzerland Group PLC on Thursday looked to the remainder of its financial year with confidence after a bumper Christmas trading period.
Revenue for the third quarter that ended January 30 - encompassing the all-important festive trading period - was GBP348.1 million, up 28% on a year ago at constant currency and 37% higher than pre-pandemic levels.
Demand for luxury watches in the UK and US remained strong, with sales up 21% on a year ago and demand outstripping supply.
US revenue was up 45% on a year ago at GBP124.6 million, with "exceptional" luxury jewellery growth, while the UK performance was driven by a "thriving" domestic clientele, with sales up 20% to GBP223.5 million.
Reflecting strong trading in the quarter, Watches of Switzerland now expects full-year revenue and profit towards the top end of the guidance that it provided back in November. At the time, the company guided for revenue of between GBP1.15 billion and GBP1.20 billion for financial 2022, up from GBP905.1 million in financial 2021.
"Strong trading to date, revised pricing by certain brands and visibility of supply for calendar 2022 all support our expectation to perform towards the top end of our full year guidance. Demand in our category continues to outstrip supply and we remain confident in the future of our business and achieving the goals laid out in our Long Range Plan," said Chief Executive Brian Duffy.
The firm said it has an "exciting" pipeline of projects for the remainder of the financial year, including entry into the European market through the opening of six mono-brand stores in Sweden, Denmark and Ireland.
Shares in Watches of Switzerland were up 1.6% at 1,304.81 pence in London on Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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