Watches of Switzerland Group – the top seller of Rolex watches in the UK – cut its sales and growth forecasts, blaming shifting luxury spending habits and erratic demand, reported Bloomberg on Thursday

The company said holiday sales were erratic and, amidst an uncertain economic environment, the trend is likely to continue.

The company cut its full-year revenue target to between £1.53 billion ($1.94 billion) and £1.55 billion from a previous forecast of £1.65 billion to £1.7 billion, added Bloomberg.

Organic revenue growth targets were slashed to between 2% and 3% from 8% to 11% previously.

Swiss luxury watchmaker Rolex raises prices in the UK, leaves rates in US unchanged

“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,” Chief Executive Officer Brian Duffy was quoted as saying.

Demand for luxury watches has slowed after an unprecedented boom during the pandemic.

Earlier this month, Rolex raised prices in the UK while leaving its US pricing unchanged.

LVMH shares tumble, hit fashion sector as luxury giant’s sales growth slows

Last year, Rolex also amped up production, preparing to add three more facilities that will begin producing luxury watches by 2025, in an effort to meet an unexpected rise in demand for its timepieces.

The luxury goods sector has recently been suffering from lower demand, as British heritage brand Burberry warned shareholders of lower profits this year, citing weak holiday demand.

Late last year, luxury French conglomerate LVMH also saw a drop in share prices, citing slowing demand for high end goods in the United States and Europe, where rising prices have prompted shoppers — especially younger generations — to pull back from a post-pandemic spending spree.