Shares in Watches of Switzerland surged 15% on Thursday as the luxury timepiece retailer said it was "cautiously optimistic" about future trading after a 4% rise in sales in the final quarter of its financial year driven by the US.
Group revenue came in at £380m in the 13 weeks to April 30. US sales were up 14% to £190m but fell 4% to the same figure in the UK and Europe due to a lack of wealthy tourist spending in response to the British government's ban on VAT- free shopping for visitors.
Full-year group revenue rose 2% on a constant-currency basis to £1.53bn as a strong rise in the US was offset by macroeconomic conditions in the UK. WoS forecast adjusted operating profit of between £133m - and £136m, down from 2023's £165m.
Looking ahead for fiscal 2025, the seller of Rolex watches expects adjusted core earning to increase by just 0.2 -0.6%.
The company forecast revenue of £1.67 - 1.73bn. Chief executive Brian Duffy said the company is "committed to the targets to more than double sales and adjusted EBIT by the end of FY28".
Reporting by Frank Prenesti for Sharecast.com