Watches of Switzerland Group boosted by strong demand for luxury items
Watches of Switzerland Group has grown its third quarter revenue by 27.9% year-on-year to £348.1 million after it benefited from strong demand for luxury items in the UK and US.
On a two-year basis, group sales were up 36.5%.
In the 13 weeks to 30 January, sales of luxury watches from brands such as Rolex, Patek Philippe and Audemars Piguet climbed by 21% as demand consistently exceeded supply.
Meanwhile, sales of luxury jewellery rose by 88.4% year-on-year due to a strong market, continued improvement in ranging, incremental growth from the group’s Betteridge acquisition, and the opening of its first Bvlgari boutique.
Looking at the UK, revenue was up 20.1% to £223.5 million in the period with the performance driven by a thriving domestic customer base and an omnichannel approach supported by increased digital marketing. Sales in the US rose by 44% to £124.6 million.
Watches of Switzerland said its strategy to expand in Europe is progressing after it secured six mono-brand boutiques in Sweden, Denmark and Republic of Ireland which will open in the new financial year.
Brian Duffy, Watches of Switzerland chief executive, said: “I am pleased to report continued strong momentum for our group following a successful Christmas trading period. We have delivered impressive growth in both luxury watches and luxury jewellery in both the UK and US markets demonstrating the value of our portfolio of world leading partner brands.
“I am also pleased to report a strong sales performance of the five stores acquired in the year and a great contribution from our new colleagues.”
Due to the strong third quarter trading, the group now expects full year revenue and profit to be towards the top end of the upgraded guidance that was announced back in November.
Looking ahead, Duffy said: “Demand in our category continues to outstrip supply and we remain confident in the future of our business and achieving the goals laid out in our long range plan.”
Watches of Switzerland Group operates 171 stores in the UK and US and its brands include Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors and Betteridge.