LONDON (ShareCast) - (Sharecast News) - Watches of Switzerland said first-quarter trading was ahead of expectations as the luxury watch retailer reported a 6.2% increase in annual profit.

Operating profit for the year to the end of April rose to £48.3m from £45.5m a year earlier as revenue increased 5.9% to £819.3m. Adjusted earnings before interest, tax, depreciation and amortisation rose 13.6% £78.1m, at the top end of guidance.

The FTSE 250 company said revenue fell 27.6% in the first quarter, beating its expectations, with growth in June and July. It predicted annual revenue to increase to between £840m and £860m on expectations for strong demand for luxury timepieces in the UK and US.

The company's shares rose 16% to 304p at 08:29 BST.

The seller of Rolex and Patek Philippe watches said Covid-19 shutdowns caused sales to plunge 85% in the last six weeks of the financial year but that a 15.8% increase in income in the first 46 weeks meant revenue was positive for the year.

Chief Executive Brian Duffy said: "While we began FY21 with our global store portfolio closed due to the pandemic, we were well prepared for the re-opening of our stores during Q1 and trading has exceeded our expectations in both the UK and the US."

Since the Covid-19 lockdown, UK sales have been driven by strong online trading and domestic demand in stores outside London, partly offsetting lower tourist sales in London and at airports. In the US all reopened stores performed strongly compared with a year earlier.

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