Watches of Switzerland sales smash £418m

Watches of Switzerland
The group benefited from strong demand for luxury watches and jewellery
// Watches of Switzerland revenue rises in the six months to October 31
// The retailer has upgraded its full year outlook

Watches of Switzerland has reported a revenue increase in its first half of 44.6 per cent to £586.2 million.

The luxury retailer has upgraded its full year outlook after the performance in the UK.

In the six months to October 31, sales across the UK rose by 42.3 per cent to £418.6 million.

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Sales were also strong in the US where there was growth of 50.3 per cent to £167.6 million.

The group benefited from strong demand for luxury watches and jewellery, with growth led by a significant increase in volumes of non-supply constrained brands.

Meanwhile, online sales rose by 28.7 per cent during the period.

“Over the last two years, we have demonstrated the versatility of our multichannel model with a more than doubling of sales to domestic clients and within this half year, a significant change in brand mix,” Watches of Switzerland chief executive, Brian Duffy said.

“Our teams have been fantastic in embracing all modes of customer engagement, driving growth across all channels throughout this period.

“The strength of our performance, both in our well established UK business and in our growing US business, coupled with our confidence in the luxury watch and jewellery categories has led us to upgrade our guidance for the full year.

“We are well stocked for the holiday period and look forward to providing an exceptional shopping experience for our customers.”

The group has been working to expand its luxury watch and jewellery virtual boutique in the UK, and has continued to grow its ‘By Personal Appointment’ business which now accounts for approximately 40 per cent of UK sales.

Watches of Switzerland said it does not anticipate a return of tourism and airport business to pre-pandemic levels during the year, but expects revenue to come in at £1.15 billion to £1.20 billion compared to a previous guidance £1.05 billion to £1.10 billion.

It has also updated its EBITDA margin to between one per cent and 1.5 per cent from a previous flat to 0.5 per cent.

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