Watches of Switzerland posts record full year revenue after strong US demand
Watches of Switzerland Group has posted record annual revenue and a surge in profit after a particularly strong performance in its US business and signs of recovery in the UK.
In the 53 weeks to 3 May, group revenue climbed by 11% to £1.8 billion or by 13% in constant currency.
Group adjusted EBIT rose by 3% to £155 million, or by 6% in constant currency, as statutory pre-tax profit climbed by 76% to £133 million following a reduction in the group’s exceptional costs.
Subscribe to TRBBrian Duffy, chief executive of Watches of Switzerland Group, said: “This performance is testament to the agility of our business model, our strong relationships with brands and the strength of our teams, who have executed well.
“We have prioritised our highest-return opportunities, investing in our showroom estate and digital capabilities, driving productivity and broadening our client proposition.”
The group said trading in the UK improved over the course of the year, despite a subdued consumer environment. Revenue increased by 5% to £901 million after a disciplined approach to management of its showrooms and targeted investment in key locations.
Meanwhile, revenue in the US climbed by 24% in constant currency to £927 million and now accounts for more than half of group revenue. Watches of Switzerland said growth was broad-based, led by underlying demand, showroom investment and the contribution from recent acquisitions.
The group described trading in the first ten weeks of its new financial year as encouraging, with initial signs of improvement in the UK.
Looking ahead, Duffy said: “We see a substantial runway for long-term growth, in both revenue and profit.
“The US represents a major opportunity, with considerable potential for further growth and market share gains.
“In our home market, the UK, the trading backdrop is showing encouraging signs of improvement, and I would like to thank our teams across the US and UK for the outstanding service they continue to provide to clients.
“With a leading position in the UK, a strengthening presence in the US, long-standing brand partnerships and a clear pipeline of opportunities, we are well placed for the next phase of profitable growth.”
