Watches of Switzerland shares surge on record revenue as US demand soars
Watches of Switzerland shares surged after the firm revealed record revenue growth, boosted by wealthy Americans flocking to luxury watches.
The UK’s largest luxury watch retailer hailed a 13 per cent jump in revenue to £1.8bn in the year to May, as revenue climbed by 24 per cent to £1.2bn in its US market alone.
Shares in the FTSE 250 firm jumped by 13 per cent to 600p on Thursday’s open, leaving the stock up 28 per cent in the year so far.
The watch retailer suffered from Trump’s erratic tariff policy in the last 18 months but has managed to capitalise on thriving demand in America, which it says is the world’s largest and fastest growing luxury watch market.
Watches of Switzerland achieved 25 per cent growth in its US retail market. Meanwhile, revenue at Roberto Coin – the Italian luxury jeweller it owns – shot up 22 per cent.
US revenues surge
The US became the firm’s biggest market – where revenue jumped to £927m – while revenue grew by five per cent in the UK to £901m.
The watch retailer said it has managed to improve its performance in the UK despite consumer confidence dropping to a two-year low.
Chief executive Brian Duffy hailed a “a major milestone in the world’s largest and fastest growing luxury watch market, achieved in just over eight years from entering the US”.
He said: “In the UK, performance has improved despite the challenging macroeconomic backdrop, with resilient demand for luxury watches and jewellery.”
Watch seller shrugs off tourism dip
The damage being caused to some luxury titans by the drop-off in tourism caused by the Iran war was revealed last month, when the owners of brands including Gucci, Louis Vuitton and Birkin saw the conflict hit their revenues.
But Watches of Switzerland said it will not be dragged down by the conflict, saying it has minimal exposure to tourist consumers and to the Middle East market.
The firm recently acquired Texas-based luxury jeweller Deutsch & Deutsch and said it has seen good performance in its four US locations.
The stores, which primarily trade in Rolex watches, have generated £16m in revenue since the takeover, as the deal pushed Watches of Switzerland’s net debt up to £57m.
The firm was founded in 1924, when Maurice Lane opened its first office in Ludgate Hill, London.