Watches of Switzerland “adapts to Covid-19 challenges” as profits rise

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Watches of Switzerland trading update covid-19 pandemic Brian Duffy
Watches of Switzerland’s group revenues across the full year increased
// Watches of Switzerland full-year profits rise
// However, trading conditions have continued to prove challenging due to the pandemic

Watches of Switzerland has seen its full-year profits rise despite the Covid-19 pandemic affecting the retail sector during lockdown.

During the 52 weeks to April 26, the luxury watch group’s adjusted EBITDA rose by 13.6 per cent to £78.1 million.

Operating profit climbed 6.2 per cent to £48.3 million over the same period.


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Meanwhile, group revenues across the full year increased 4.8 per cent to £810.5 million.

However, sales during the final six weeks of its financial year dropped by 84.9 per cent.

Sales in the UK dropped by 0.5 per cent to £575.9 million, but rose 9.4 per cent across the 46 weeks to March 15.

In the final six weeks of its fiscal year, UK revenues dropped by a colossal 84.5 per cent.

Watches of Switzerland’s UK sales dropped 30.1 per cent to £108.3 million during the quarter.

Similarly in the US, revenues dropped 85.9 per cent slump in the six weeks to April 26, but were up 36.4 per cent prior to lockdown.

Group revenue in the 13 weeks to July 26 dropped 27.6 per cent to £151.6 million despite Watches of Switzerland saying the figures are “ahead of management expectations”.

“We delivered a strong performance during the first 46 weeks of the year before adapting with speed and agility to the challenges presented by the Covid-19 pandemic,” Watches of Switzerland chief executive Brian Duffy said.

“Momentum accelerated in our US business adding to the positive performance in the UK and we remain confident in our strategy to drive profitable growth in both markets.”

Watches of Switzerland said it expects 2020/21 revenues to come in between £840 million and £860 million.

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