[ad_1]
Watches of Switzerland has reported the kind of revenue, profit and free cash flow growth that most companies can only dream of. The fact it has achieved stellar growth in a cost-of-living crisis shows that not everyone is short of money.
AJ Bell’s Danni Hewson said: “The market has previously worried that the luxury goods market might not be as resilient as previously thought.
“Second-hand Rolex prices have weakened, with the decline attributed to people who had previously won big on crypto flooding the market with the watches they had bought to show off their new-found wealth. As crypto prices fell back, many people playing that game reassessed their finances and offloaded some of their assets.
“There have been cracks elsewhere in the luxury goods sector, such as falling diamond prices. Watches of Switzerland even reported a ‘more challenging trading environment’ in May, which naturally pulled extended earlier share price losses as investors pondered if the luxury goods boom had passed its peak.
“Therefore, today’s announcement that everything is still going swimmingly has caught investors by surprise, hence the 11% share price jump. More people are getting on the company’s list to buy watches, average selling prices are moving higher, and expansion plans are going well, putting Watches of Switzerland ahead of its long-range plan.
“Despite the uncertain economic backdrop, the fact Watches of Switzerland hasn’t downgraded its guidance has been taken as a massive positive in the eyes of investors.”
[ad_2]
Source link
