Watches of Switzerland reports revenue growth as US customers keep spending
Watches of Switzerland, the UK’s largest luxury watch retailer, today reported revenue growth of two per cent in constant currency for the first half of its financial year.
Over the six months to 29 October, the company benefitted from strong trading in its key US market, while sales in the UK and Europe struggled.
US sales expanded 11 per cent year-on-year while UK and Europe revenue fell four per cent in the period. The US now accounts for 43 per cent of group revenue. Group e-commerce sales declined three per cent due to “strong comparatives”.
While revenue expanded, the company reported a 16 per cent decline in statutory operating profit to £78m for the period as higher costs ate into its bottom line.
Watches of Switzerland ended the period with net cash of £16m.
Commenting on the results, chief Brian Duffy said: “Demand dynamics remain strong, and our client registration lists continue to grow, whilst the pre-owned market remains a significant opportunity.
“We are confident in our long-range plan objectives of doubling sales and profit by 2028 through capitalising on our leading market positions and the unique growth opportunities available to us as the world’s largest luxury watch retailer.”