Luxury watch retailer, known for offering prestigious brands like Rolex, Breitling, and TAG Heuer, has adjusted its revenue forecast for fiscal 2024, citing a more challenging retail landscape in the UK. The revised estimate places revenue between GBP 1.53 billion and GBP 1.55 billion ($1.94 billion and $1.97 billion), reflecting a modest growth of 2% to 3%. This contrasts with the initial projection of 8% to 11% growth, which would have amounted to a total between GBP 1.65 billion and GBP 1.7 billion ($2.1 billion and $2.16 billion).
Despite achieving double-digit growth in US sales during the third fiscal quarter ending January 28, the luxury retailer faced substantial headwinds in the UK market, particularly in the lead-up to Christmas and beyond. CEO Brian Duffy highlighted the volatility experienced during the festive period, attributing it to consumers reallocating their spending to other sectors such as fashion, beauty, hospitality, and travel.
The downturn significantly impacted both luxury watch brands and non-branded jewelry within the UK market, according to the company. Anticipating a continued slowdown for the remainder of the fiscal year, the retailer is set to release its full results for the fiscal third quarter on February 8. The revised revenue forecast underscores the complexity and unpredictability of the luxury retail landscape in the current economic environment.
