Watches of Switzerland posts flat first half sales
Watches of Switzerland has reported flat sales in the first half of its financial year as growth in luxury watches was offset by a slowdown in the wider jewellery market.
In the six months to 29 October, revenue increased by 2% at constant currency to £761 million but was flat at reported rates.
Sales in the UK and Europe declined by 4% to £433 million after trading was largely driven by a domestic clientele.
However, sales in the US rose by 5% to £328 million which the group attributed to the success of its model and strong customer demand.
The results meant that Watches of Switzerland posted a year-on-year pre-tax profit decline of 20% to £67 million.
During the period, the group continued to invest in UK showroom openings with six mono-brand boutiques and one Goldsmiths multi-brand store in Bromley.
Brian Duffy, chief executive of Watches of Switzerland, said: “Looking ahead, we are well positioned for a good holiday trading period as we present our clients with our strongest ever range of luxury watches and luxury branded jewellery. We remain on track to deliver full year guidance, with our confidence for H2 underpinned by the reopening of several high revenue showrooms which were closed for upgrade in H1.
“Looking further ahead, we are confident in our Long Range Plan objectives of doubling sales and profit by 2028 through capitalising on our leading market positions and the unique growth opportunities available to us as the world’s largest luxury watch retailer.”