// Watches of Switzerland statutory profit before tax increases 4000% year-on-year
// Group revenues increased 13.3% in constant currency to £905m
// The retailer revealed a 5-year plan to enter the European market
Watches of Switzerland has revealed plans to enter the European market for luxury timepieces through acquisitions and new boutiques.
The decision comes after spending years focusing on boosting its foothold in the UK and US.
The retailer said the region offers growth potential in travel retail and ecommerce as it unveiled a five-year plan for the period through fiscal 2026.
The plans are a signal that demand for luxury goods will remain strong as the sector recovers from the pandemic slump, even as international tourism has yet to return.
The company will follow the strategy it used in the US, where it bought US retailers, expanded in ecommerce and revamped brick-and-mortar stores.
Watches of Switzerland said it expects the UK to make up as much as 48 per cent of total revenue, while the European Union will represent between five per cent and eight per cent.
The luxury specialist recorded a 4000 per cent increase year-on-year in statutory profit before tax, up from £1.5 million to £63.7 million in the 53 weeks to May 2.
Group revenues increased 13.3 per cent in constant currency to £905 million, while its adjusted EBITDA grew 34.9 per cent to £105.4 million.
“I am delighted to report a year of strong growth. Our performance is testament to the resilience and hard work of our colleagues, good support from our brand partners and our proven model, including our leading online platform and bold, impactful marketing approach,” chief executive Brian Duffy said.
“The luxury watch market remains predominantly supply-driven with demand exceeding product availability for key brands and models.
“In spite of the headwinds faced during the year, our teams delivered fantastic results. We generated outstanding growth and strong momentum in the US and are well positioned for future growth.
“In the UK, where our stores were closed for approximately half the year, we further enhanced our market-leading position.
“Trading has remained strong in both the UK and the US since the year-end. Our customer has accumulated disposable wealth and our category is an attractive option.
“Our growth projections reflect our best estimate of future supply based on our past experience of investment and expansion.
“Looking ahead, we are excited to capitalise on the significant opportunity to accelerate our strategy. The UK luxury watch market continues to grow, and we continue to advance our leading position.
“In addition, we plan to achieve growth through further geographical diversification, becoming the clear leader in the US market, and establishing a presence in the EU with the targeted roll-out of our proven model.”