Watches of Switzerland upgrades full year outlook after strong first half
Watches of Switzerland has upgraded its full year outlook after seeing its first half group revenue increase by 44.6% to £586.2 million.
In the six months to 31 October, the group put in a robust performance in the UK where sales driven by a thriving domestic market rose by 42.3% to £418.6 million.
Sales were also strong in the US where there was growth of 50.3% to £167.6 million.
During the period, the group benefited from strong demand for luxury watches and jewellery, with growth led by a significant increase in volumes of non-supply constrained brands.
Online sales were also strong, rising by 28.7%.
Brian Duffy, Watches of Switzerland chief executive, said: “We are very pleased with our first half performance. Over the last two years, we have demonstrated the versatility of our multichannel model with a more than doubling of sales to domestic clients and within this half year, a significant change in brand mix.”
The group has been working to expand its luxury watch and jewellery virtual boutique in the UK, and has continued to grow its “By Personal Appointment” business which now accounts for approximately 40.0% of UK sales. It has also enhanced its clienteling and digital marketing initiatives.
Duffy added: “Our teams have been fantastic in embracing all modes of customer engagement, driving growth across all channels throughout this period.”
L:ooking ahead, the group said it does not anticipate a return of tourism and airport business to pre-pandemic levels during the year, but now expects revenue to come in at £1.15 billion to £1.20 billion compared to a previous guidance £1.05 billion to £1.10 billion. It has also updated its EBITDA margin to between 1% and 1.5% from a previous flat to 0.5%.
Duffy added: “The strength of our performance, both in our well established UK business and in our growing US business, coupled with our confidence in the luxury watch and jewellery categories has led us to upgrade our guidance for the full year. We are well stocked for the holiday period and look forward to providing an exceptional shopping experience for our customers.”
The group’s brands include Watches of Switzerland, Mappin & Webb, Goldsmiths and Mayors.
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