Watches of Switzerland said on Thursday it was "cautiously optimistic" about trading in new fiscal year 2025 after reporting a 40% drop in its annual pretax profit following a challenging year for the luxury retailer.

"In FY24, UK and Europe sales were down 5%, impacted by significant price increases overall at a time of reduced consumer confidence influencing discretionary spending, and we see these pressures easing in FY25," it said in a statement.

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)