Watches of Switzerland's FY24 revenues up but profit drops

Watches of Switzerland revenue of 1,538 million pounds, increased 2 percent at constant currency for the full year, and remained flat at reported rates, while the company reported a 40 percent decline in annual pre-tax profit to 92 million pounds.

The company expects FY25 revenues to be in the range of 1.67 to 1.73 billion pounds, growth of 9 to 12 percent at constant currency and adjusted EBITDA margin expansion between 0.2 to 0.6 percentage points versus FY24.

Commenting on the FY24 trading, Brian Duffy, CEO of Watches of Switzerland said: "I am proud of the performance that our team delivered this year in what was undoubtedly a more challenging market. In particular, our US business went from strength to strength, growing 11 percent and will soon represent half of group sales.”

Highlights of Watches of Switzerland’s full year results

Luxury watches, representing 87 percent of the group revenue, rose 3 percent in constant currency and 1 percent reported, with a particularly strong performance in the US.

The company said in a release that luxury jewellery revenue declined 13 percent in constant currency, or declined 14 percent reported, with a sequential improvement through the year. Fourth quarter of the year was its best performing period. Luxury branded jewellery significantly outperformed non-branded jewellery.

Post year end, on May 8, 2024, the group acquired the entire share capital of Roberto Coin, the exclusive distributor for Roberto Coin in the USA, Canada, Central America and Caribbean, for 130 million dollars.

The company added luxury jewellery brands within the UK and US portfolios, including the introduction of David Yurman, Pomellato, Fred, Repossi, Pasquale Bruni and Faberge and expanded with existing brands such as Messika.

Watches of Switzerland also launched Rolex certified pre-owned in the US in July 2023 and the UK in September 2023. The group’s total pre-owned and vintage revenue doubled in the fourth quarter.

The company invested 78 million pounds to open 22 new showrooms and refurbish 15 showrooms.

Review of Watches of Switzerland’s results in the US and other markets

In the US, the company’s revenue of 692 million pounds, increased 11 percent at constant currency, 6 percent at reported rates.

In the US, FY24 ended with 25 multi-brand showrooms and 31 mono-brand boutiques.

The company’s UK and Europe revenue of 846 million pounds, declined 5 percent, impacted by macroeconomic conditions in the UK. UK performance continues to be driven by a domestic clientele with minimal return of tourist spending due to lack of VAT free shopping. The company acquired 15 luxury watch showrooms from Ernest Jones.

Ecommerce revenue during the year was down 11 percent on last year, impacted by the mix of products through this channel and performance of the UK regional market.

FY24 ended with 99 multi-brand showrooms and 68 mono-brand boutiques in the UK and Europe.

"Our strategic momentum underpins our confidence in our FY25 guidance and Long Range Plan objectives of doubling sales and profit by 2028, capitalising on our leading market positions and the unique growth opportunities ahead," added Duffy.