Watches of Switzerland boosted by ‘stellar’ fourth quarter
Watches of Switzerland has grown its fourth quarter group revenue to £304 million from £218 million in the same period in the previous year.
While UK revenue climbed by 47% to £168 million, US revenue growth was also strong, increasing by 50% to £136 million.
The quarter’s performance meant that group revenue climbed by 40% to £1.23 billion in the year to 1 May after UK and US revenue rose by 36% and 48% respectively.
Brian Duffy, Watches of Switzerland Group chief executive, said: “ We are pleased to report a strong quarter of 48% growth to finish what was an outstanding year for the group. We have delivered another record year of revenue and profitability as we continue to progress our long range plan. Our teams have again excelled and done great work.”
Watches of Switzerland said it benefited from strong demand for luxury watches both in the UK and US which led sales of the items to increase by 36% in the full year. Its luxury jewellery sales were up 86% on the prior year due to a strong market and continued improvement in ranging, Sales were also boosted by incremental growth from the group’s Betteridge acquisition and the opening of its first BVLGARI mono-brand boutique.
The group expects its full year adjusted pre-IFRS 16 EBITDA to come in at between £160 million and £164 million, up from £105 million in the previous year.
Looking ahead to the outcome of the new financial year, it expects to deliver revenue of between £1.45 billion and £1.50 billion with adjusted EBITDA flat to growth of 0.5%. The group said the guidance reflects current visibility of supply of key brands and confirmed showroom refurbishments, openings and closures.
Duffy added: “We enter FY23 with visibility of product supply for super high demand brands for the remainder of the 2022 calendar year and an exciting programme of new products and marketing from other brands. We have a strong pipeline of showroom projects, and we expect an ongoing recovery in footfall and airport traffic. Our focus will be on continuing to capitalise on the momentum we have built to deliver value for all our stakeholders.”
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