Watches of Switzerland Group has reported a double-digit rise in quarterly revenue, driven by demand for luxury watches, and reiterated its full-year guidance.
AJ Bell’s Russ Mould said: “The market did not like the latest numbers from Watches of Switzerland – with soft jewellery sales helping to undo a lot of the progress the shares had made so far this year.
“The company may be taken aback at the scale of the negative reaction to what were otherwise reasonably robust third quarter numbers accompanied by reiterated guidance.
“It suggests a degree of scepticism over its claims to be relatively insulated from weaker consumer demand thanks to a wealthier clientele and the continuing strong demand for luxury watches.
“Growth in the UK and Europe certainly fell behind the company’s US operations and Watches of Switzerland lamented the fact tourist demand in the UK had yet to return.”