Watches of Switzerland posts sales growth, maintains outlook

Second quarter revenue at Watches of Switzerland Group of 379 million pounds, rose 5 percent at constant currency and 1 percent at reported rates.

The company continues to forecast revenue growth between 8 to 11 percent constant currency and revenues in the range of 1.65 to 1.70 billion pounds for fiscal 2024.

Commenting on the trading update, Brian Duffy, the company’s chief executive Officer, said in a statement: "I am pleased to report an improved Q2 trading performance, notwithstanding the difficult consumer environment. We have been focused on developing our network of luxury showrooms across the UK, US and Europe in the period, including the continued roll-out of the Goldsmiths Luxury showroom format, the Mappin & Webb contemporary concept, the refurbishment of the Rolex boutique in Millenia, Orlando and new mono-brand boutiques.”

Highlights of Watches of Switzerland’s Q2 results

Group pre-owned sales growth was 88 percent in constant currency and 80 percent reported.

The company’s US revenue of 165 million pounds, increased 11 percent at constant currency and 4 percent at reported rates during the quarter. Six new mono-brand boutiques opened in the US for Breitling, Tag Heuer and Grand Seiko. Three at Canal Place, New Orleans and three at Fashion Place, Utah.

The company said UK and Europe revenue of 214 million pounds were in line with prior year driven by domestic clientele across the UK.

Review of Watches of Switzerland’s H1 performance

In the first six months, group revenue of 761 million pounds, rose 2 percent at constant currency and remained flat at reported rates. Luxury watches revenue of 670 million pounds, increased 3 percent at constant currency, flat at reported rates, while luxury jewellery declined 15 percent at constant currency and 17 percent at reported rates to 47 million pounds.

In the first half period, US revenue of 328 million pounds was up 11 percent at constant currency and 5 percent at reported rates. UK and Europe first half revenue of 433 million pounds, declined 4 percent.

Group ecommerce sales also dropped 4 percent versus last year at reported rates.

First half adjusted EBIT is expected to be 70 million pounds to 72 million million pounds compared to 87 million pounds last year.