Good timing: Watches of Switzerland’s revenues rise amid resurgent consumer appetite for luxury goods
Watches of Switzerland’s revenues have risen 44.6 per cent year-on-year, with consumer appetite for luxury goods outpacing supplies.
The company has benefitted from wider enthusiasm for watches and jewellery post-lockdowns, with growth led by a vast increase in volumes of watch brands unconstrained by supply chain issues.
During the six-month window between May and October, the watch vendors reported sales of £586.2 million – which was not just a rebound from lockdown-influenced figures but was also a 40.8 per cent increase on the same time period two years ago before the pandemic was a factor.
Its strong performance was also powered by ecommerce sales, which rocketed 28.7 per cent on last year.
Statutory profit before tax has nearly doubled compared to the same time window last year – reaching £64.7m.
The half-year has been defined as a period of expansion for Watches of Switzerland, with eight new stores opened, two acquired, and three expanded.
With net cash of £30m, it looks set to continue expansion plans in the US and UK.
This is particularly attractive to the company after it delivered a robust US performance, with revenues of £167.6m – up 50.2 per cent.
The burgeoning Stateside business complements its main market, the UK, where revenues have risen to £418.6m.
Chief executive Brian Duffy said: “Our success in both the UK and the US has been testament to our robust multichannel business model, the enthusiasm and commitment of our people, and the attractive dynamics of our category where demand continues to outpace supply.”
More to follow…