Watches of Switzerland shares jump on strong post-lockdown recovery
Shares in luxury retailer Watches of Switzerland jumped today after it said sales in June and July were up on the previous year following a steep plunge during the coronavirus lockdown.
The high-end watch-seller said sales in June were positive and performance in July was up 7.4 per cent on the previous year.
Its shares jumped 15 per cent to 303p this morning.
However, the company said revenue was down 27.6 per cent at £151.6m for the three months to 26 July which it blamed on store closures due to the coronavirus pandemic.
The retailer said stores were open for approximately 38 per cent of potential trading hours in the period because of the covid-19 lockdown.
Since re-opening, locations in London and its airport shops have been affected by a lack of tourists, the company said.
Watches of Switzerland posted revenue of £810.5m in the year to 26 April, a rise of 4.8 per cent.
It also increased operating profit 6.2 per cent to £48.3m during the financial year.
The group said it expects revenue of £840m-£860m in the current financial year and profit to be flat on the previous year.
Chief executive Brian Duffy said: “Our encouraging Q1 sales performance underpins the strength of our supply-driven business model and provides the basis on which we provide FY21 guidance.
“Looking ahead, we will continue to invest in delivering on our strategic priorities to leverage our leading position in the UK and to become a leader in the US luxury watch market. We are confident that we are well positioned to emerge even stronger from these uncertain and challenging times.”
The company floated in London last May. It was previously owned by US private equity firm Apollo Global Management.