Watches of Switzerland Group posts strong third quarter trading
Watches of Switzerland Group has said its third quarter trading was strong despite an extended period of store closures in the UK due to Covid-19.
In the 13 weeks to 24 January, group revenue rose by 5.7% year-on-year to £272.6 million.
The group said the performance was largely driven by luxury watch sales, which in the first nine months of the current financial year accounted for 86% of group revenue.
Meanwhile UK revenue came in at £186.1 million, which was 1.5% higher year-on-year. The group said strength in domestic sales continued to offset lower tourist and airport spend. In addition, UK ecommerce sales climbed by 121.1% which helped to offset the impact of store closures.
US revenue was also up, rising by 16% to £86.5 million. While the group’s Mayors stores in Florida and Georgia and Watches of Switzerland stores in New York continued to trade well, sales at stores in Las Vegas moderated due to a decline in domestic tourism in the city.
Brian Duffy, Watches of Switzerland chief executive, said: “We delivered another strong performance, driven by continued strong growth in the US and a surge in UK online sales, which mitigated the significant headwinds, the extended period of store closures and the continued very low level of international business in the UK.
“Our performance is underpinned by the strengths of our leading multi-channel business model and the uniquely attractive qualities of the luxury watch category, where demand continues to outpace supply. The experience of prior lockdowns in the UK has given our teams the tools to optimise commercial opportunities through online and clienteling, whilst in the US we are driving fantastic conversion levels with continued subdued traffic.”
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