Watches of Switzerland second quarter trading better than expected
Watches of Swizerland Group has said trading has been better than expected in its second quarter with revenue in the first ten weeks of the period rising by 18.3% to £202.7 million.
The group said its UK performance continues to be driven by strong domestic trading which has offset lower tourist and airport sales. In addition, its regional stores have fared better than those in London where footfall remains weak.
In the second quarter to date, the group’s UK sales have risen by 12.6% year-on-year to £145.1 million with ecommerce accounting for 49.9% of trade.
The group said its US business has also performed well with sales rising by 35.2% to£57.7 million,
Brian Duffy, Watches of Switzerland chief executive, said: “We are very pleased with the strong Q2 performance we are delivering in what continue to be unprecedented market conditions.
“Stronger than anticipated UK domestic sales are offsetting lower tourist and airport traffic, whilst regional stores are continuing to outperform London stores. Furthermore, the strong momentum we have established in the US has further accelerated. All US regions are contributing to this positive trend.”
The results mean that Watches of Switzerland has raised its full year guidance and now expects revenue to come in at between £880 million to £910 million compared to a previous guidance of £840 million to £860 million.
Duffy added: “Our guidance for the balance of the fiscal year assumes that the positive trend experienced in Q2 will be moderated by the impact of pandemic related retail disruption in the UK and the US and uncertainty in the US economy, impacting mainly in Q3. We do not assume any improvement in recent trends regarding the travel or tourist sectors.
“Looking ahead, we will continue to focus on our strategy by investing in high quality growth through selective capital projects and targeted marketing activity.”
Photo by Georgia Hawkins
