Investing.com -- Shares in Watches Of Switzerland (LON:WOSG) plummeted on Thursday after the British timepiece group slashed its full-year guidance, warning of "challenging" macroeconomic conditions.
In a trading update, the company noted that it experienced a "volatile trading performance" in the run-up to and beyond the Christimas holiday as the difficult trading environment weighed on consumer expenditures on items like high-end watches.
"The festive period was particularly volatile this year for the luxury sector, with consumers allocating spend to other categories such as fashion, beauty, hospitality and travel," said Chief Executive Officer Brian Duffy in a statement.
WoS also flagged that there was an "unusually high level" of promotional activity in non-branded jewellery at its U.K. operations.
The FTSE 250-listed seller of famous brands like Omega and Cartier subsequently argued that it was prudent for it to assume a "more cautious view" of its outlook for the rest of its 2024 fiscal period.
Revenue projections for the 12 month period were lowered to £1.53 billion - £1.55 billion from WoS's previous guidance of £1.65 billion - £1.70 billion. Annual earnings before interest and tax margin is also now expected to come in at 8.7%-8.9%, down from original projections that it would be in line with last year's mark of 10.7%.
However, WoS said demand for its products remains strong, particularly in the U.S., where sales grew by double-digits in its third quarter.