(Reuters) - Watches of Switzerland is "cautiously optimistic" about business in fiscal year 2025, following a tough year of careful production in the industry, the luxury retailer said on Thursday.

Luxury brands have seen a drop in demand, with consumer spending slowing down due to rising costs of living.

The company expects fiscal year 2025 revenue between 1.67 - 1.73 billion pounds, compared with the current fiscal year's revenue of 1.54 billion pounds.

Even with a prudent 2025 outlook, CEO Brian Duffy said the company is "committed to the targets to more than double sales and adjusted EBIT by the end of FY28".

(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman and Sohini Goswami)