Watches of Switzerland: US sales drive return to growth
Rolex and Patek Philppe-seller Watches of Switzerland Group (WOSG) has returned to growth, driven by a double-digit sales rise in the US.
The luxury watch seller told markets this morning that full year Group revenue reached £1.6bn in the year ended April 27, up eight per cent year on year and in line with market expectations.
This was driven by second-half revenue growth, with revenue up 12 per cent in the second half versus four per cent in the first.
WOSG struggled with a sharp downturn in profit last year due to a slowdown in the wider luxury market. Investors were also unnerved by a decline in the price of high-end watches from the market’s pandemic-era boom.
But the company said it was “encouraged” by trading, with demand for its key luxury brands outstripped supply in both the US and UK markets.
Demand was particularly high in the US: Revenue improved 19 per cent in the second half of the financial year and 11 per cent in the first half.
Waning uncertainty
WOSG added that the “temporary period of consumer uncertainty” due to Trump’s tariffs – which promised a 31 per cent tariffs on Swiss-imported goods – had now normalized, although it was “cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns”.
CEO Brian Duffy said: “In the second half of FY25 we returned to growth in both the UK and US. In the US, we experienced strong momentum [and] in the UK, we were pleased to see the external environment stabilise in line with our expectations.”
Duffy hailed the opening of the firm’s new flagship Rolex boutique on Old Bond Street, adding that “trading since launch has exceeded our expectations.
“We delivered several key Rolex projects in the US, including the brand’s introduction in Plano, Texas, its reintroduction in Jacksonville, Florida, and the conversion of Mayors Lenox in Atlanta into a 3,000 sq. ft Rolex boutique.
“As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category where demand for key brands continues to outstrip supply. We are of course mindful of the broader macroeconomic and consumer environment, including potential US tariff changes.”
Full year adjusted earnings before interest and tax (EBIT) is expected to be in line with market expectations.