Watches of Switzerland Group Plc, the top seller of Rolex timepieces in the UK, expects first quarter sales to decline in a sign of less buoyant times for luxury watch retailers.

The company said Wednesday that the challenging trading environment of the last six months is continuing into the current fiscal year. It blamed the timing of product deliveries from brands as part of the reason for the expected sales decline.

The statement underscores a cooling of the red-hot luxury watch market which saw unprecedented demand for brands including Rolex, Patek Philippe and Audemars Piguet during the pandemic.

Watches of Switzerland is the largest luxury watch dealer in the UK and has 193 showrooms and boutiques worldwide. It has been expanding rapidly in the US, the biggest market for luxury watches.

The company said sales rose 19% on a constant currency basis last year to £1.5 billion ($1.9 billion). It expects sales in the current fiscal year to rise to between £1.65 billion and £1.7 billion, a gain of 8% to 11% at constant currencies and in line with analyst consensus forecasts.

The company plans to open an Audemars Piguet boutique in Manchester next year as well as a boutique selling Rolex-sister brand Tudor on London’s Old Bond street.