// Watches of Switzerland increases guidance amid Q2 sales increase
// In the quarter to date, overall revenue has shot up 20.2% to £202.7m
// UK quarterly sales to date are up 12.6% to £145.1m, boosted by a 49.9% in ecommerce sales
Watches of Switzerland has enjoyed bumper trading throughout the coronavirus pandemic, with a strong second quarter update prompting it to raise its full year sales forecast.
The first 10 weeks of the current quarter, which ends on October 25, the retailer has so far generated revenue of £202.7 million – a 20.2 per cent year-on-year increase in constant currency or 18.3 per cent on a reported basis.
Its UK market has been be driven by strong domestic sales, making up for lost revenue from tourists due to travel restrictions amid the pandemic.
Tourism sales in Watches of Switzerland’s second quarter has so far accounted for just 9.2 per cent of the retailer’s overall revenue, compared to the same period last year when it for 32.5 per cent.
Watches of Switzerland added that its regional stores were outperforming its London stores, where footfall remains weak due to low numbers of office workers and tourists. Usually it’s the other way around.
The retailer’s UK quarterly sales to date are up 12.6 per cent to £145.1 million, boosted by a 49.9 per cent in ecommerce sales.
In the US, Watches of Switzerland’s quarterly sales to date came in at £57.7 million, up 43.4 per cent in constant currency or 35.2 per cent on a reported basis.
The retailer also said new product launches “have also been stronger than anticipated with a positive influence on sales”.
As a result of its performance so far, Watches of Switzerland has revised its FY21 guidance upwards, with revenue expected to be between £888 million and £910 million – a significant increase on the £840 million to £860 million previously predicted.