Watches of Switzerland upbeat on robust Q4, FY results

Watches of Switzerland has reported robust trading in the fourth quarter and full year ended May 1 as footfall continued to recover following the end of lockdowns.

In the three months to May 1, group revenue increased by 48 percent year-on-year to 304 million pounds, with US revenue up 50 percent to 136 million pounds, and UK revenue up 47 percent to 168 million pounds.

For the full year, revenue was up 40 percent to 1.2 billion pounds, with US revenue up 48 percent to 428 million pounds, and UK revenue up 36 percent to 810 million pounds.

The group said it expects FY22 adjusted pre-IFRS 16 EBITDA to be between 160 million pounds and 164 million pounds, compared to 105 million pounds a year earlier.

“We are pleased to report a strong quarter of 48 percent growth to finish what was an outstanding year for the group,” CEO Brian Duffy told investors. “We have delivered another record year of revenue and profitability as we continue to progress our Long Range Plan.”

Duffy hailed an “outstanding” performance in both the US and UK, “supported by broad-based sales growth across our portfolio of world leading partner brands and driven by domestic clientele”.

He said he is “delighted to announce our forthcoming entry into the European market, which will provide our group with further growth opportunities and geographic diversification”.

The group said it has entered into fiscal year 2023 with “strong momentum” and anticipates that “disruption from the pandemic is now largely behind us with ongoing recovery in footfall and airport traffic”.

For FY23, the group expects revenue of between 1.45 billion pounds to 1.5 billion pounds, and expects adjusted EBITDA to be flat or up 0.5 percent.