Watches of Switzerland Group (WoS) reporting a dip in revenues? Yes, it can happen. It said that Q1’s “robust” demand for luxury watches exceeded supply in UK/Europe (which represents 88% of revenue) and that stifled sales numbers there. It was also up against tough year-ago comparisons.

But there was a strong US performance to cheer up the results and they were hailed by the group as a record performance that came in line with its guidance and expectations as average selling prices continued to rise. 

Another important plus was the ongoing improvement in airport business as traffic recovered, with all airport showrooms open ahead of the summer holiday travel period, it said.

But overall group sales dipped 2% year on year at reported rates to £382 million in the three months ended 30 July.

Revenue in the UK and Europe fell 8% to £219 million because WoS suffered reduced access to goods than in the same period last year. E-commerce sales were also down 2% at reported rates, up against strong comparatives.

Sales of jewellery also fell 15% year on year amid weaker consumer sentiment and a repositioning in the US to full-price sales, the company noted.

By contrast, overall sales in the US increased 7% reported to $206.9 million as demand grew and the company opened new stores.

The retailer also enjoyed the benefit from the launch of its new certified pre-owned watch programme, which debuted in the US in July. 

CEO Brian Duffy said its early performance “has been encouraging as clients react positively. We are excited about this opportunity”, noting it was on track to launch the UK version of the programme in September.”

With WoS maintaining its annual sales forecast for the year ending April 2024, Duffy added: “Looking ahead, we expect to return to more normalised growth rates in the balance of the financial year,” Duffy added. “Our full-year guidance for another year of strong growth remains unchanged, underpinned by our supply visibility, client registration on interest lists, and strong pipeline of showroom openings, refurbishment, and investment as luxury-watch demand continues to outstrip supply.”