Watches of Switzerland touts 112% rise in profits

Watches of Switzerland touts 112% rise in profits
Watches of Switzerland continues to defy high street downturn.
// Watches of Switzerland UK revenue up 10.6%
// Luxury retailer says market conditions for luxury watches “continue to be buoyant” in the UK and US
// UK online sales rise 12% for the half year

Watches of Switzerland has bucked the high street trend, posting a huge 112 per cent rise in adjusted profit before tax to £26.5 million for the half year.

In the six months to October 27, the luxury watch retailer said wider group revenue was up 17.3 per cent to £428.7 million.

READ MORE: Watches of Switzerland revenue smashes £150m since IPO listing

Sales rose 10.3 per cent on the back of the “robust” market for luxury watches in the UK and the US.

UK revenue rose 10.6 per cent to £317.6 million, with like-for-likes up 11 per cent, thanks to strong demand.

In the retailer’s UK showrooms, revenues were up 10.4 per cent, slightly behind an impressive 12 per cent growth for UK online sales.

In Tuesday’s filing Watches of Switzerland noted that “market conditions for luxury watches continue to be buoyant in the UK and US”.

The retailer said it opened one new showroom in its half year period, refurbishing six and relocating three.

“I am delighted to report our first half year results as a listed business. Strong progress was made in both the UK and US markets as we continue to deliver on our growth plans,” chief executive Brian Duffy said.

“The growth in revenue and profitability is testament to the distinctive luxury experience we provide.

“Customers continue to react very positively to our showroom portfolio elevation programme – as reflected in increased average selling price, conversion rates, and sales uplift. Our showroom projects in the UK and US have been a success in the year to date.”

“Our omni-channel strategy continues as we expand our mono-brand programme in the UK along with mono-brand openings planned in the US, expansions in UK Travel retail and continued momentum online…With a good project pipeline, we are well positioned to deliver against our strategic targets going forward.”

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