Watches of Switzerland “cautiously optimistic” about new financial year
Watches of Switzerland Group has seen its fourth quarter revenue increase by 3% to £380 million, or by 4% at constant currency, following strong demand for key brands and an improvement in its jewellery performance.
In the 13 weeks to 28 April, luxury watches revenue grew by 3% following a particularly strong performance in the US.
Meanwhile, jewellery sales edged down 1% in the period to mark an improvement on the group’s third quarter when sales were down 18%.
Looking at the group’s regional performance, US revenue climbed by 10% to £190 million.
However, UK and Europe revenue fell by 4% to £190 million following a 7% decline in its third quarter. The group said it continued to gain market share in the luxury watch market, although sales were dampened by reduced tourist spending due to the lack of VAT-free shopping.
Brian Duffy, chief executive of Watches of Switzerland Group, said: “We finished the year strongly, with Q4 sales in line with guidance and ahead of consensus. Particularly pleasing was the performance in the US, with sales up 14% in the period.
“We are confident that our strategy, exceptional client service and strong brand relationships enables us to continue to drive growth and gain market share. We have seen growth in our registration of interest lists for sought after products, and exceptionally strong performance of pre-owned, particularly Rolex certified pre-owned.
“Our acquisition of Roberto Coin Inc. (the exclusive North American distributor of Roberto Coin) dramatically accelerates our luxury branded jewellery strategy, and we see enormous potential in bringing together this iconic brand with our retailing expertise.”
Looking ahead to the outcome of its current financial year, the group said it expects revenue to come in at between £1.67 and £1.73 billion, to mark growth of 9% to 12% at constant currency.
Meanwhile, adjusted EBIT is expected to rise by between 0.2% and 0.6%.
The group said it is entering the new financial year with cautious optimism.
Brick added: “The inherent strength of the categories we operate in, coupled with our superior business model and retail expertise continues to set us apart.
“We remain focused on executing our Long Range Plan and are committed to the targets to more than double sales and adjusted EBIT by the end of FY28.”
