“Regardless of a constructive begin to the early a part of Q3 FY24, WOSG then skilled a unstable buying and selling efficiency within the run-up to and past Christmas, because the difficult macro-economic circumstances impacted client spending within the luxurious retail sector,” the corporate mentioned in a buying and selling replace.

“We now count on these difficult circumstances to stay for the stability of our fiscal yr.”

The corporate now expects income of £1.53-1.55 billion ($1.94-1.97 billion), down from its earlier steering of £1.65-1.7 billion. Fixed foreign money income progress — which excludes fluctuations in foreign money — was revised sharply downwards from 8-11% to 2-3%, whereas EBIT (earnings earlier than curiosity and tax) margin is now projected at 8.7-8.9%.

The corporate mentioned that demand for its key manufacturers stays sturdy within the U.S., the place gross sales proceed to develop by double digits, however the U.Ok. was “extra challenged” and impacted a broad vary of luxurious watch manufacturers and non-branded jewelry.

“The festive interval was significantly unstable this yr for the luxurious sector, with customers allocating spend to different classes comparable to style, magnificence, hospitality and journey. While we’re dissatisfied with this development, we’re inspired by our market share positive aspects in each the U.S. and U.Ok.,” Watches of Switzerland CEO Brian Duffy mentioned in an announcement.

“We stay assured within the markets during which we function, our mannequin and the supply of our Lengthy Vary Plan introduced to the market in November 2023.”

It is a breaking information story and might be up to date shortly.