Watches of Switzerland mulls travel retail growth

The success of the luxury watch specialist’s travel retail business at Heathrow could change Watches of Switzerland’s plan to only focus on the two territories it’s already in and make them look at opening travel stores outside of the UK and US.

“We’re very, very successful at Heathrow so it may well be that we will do something in travel retail. I think that’s the only way we would do something outside the UK or US,” Duffy said.

Although the luxury retailer’s airport business is “growing very fast”, Duffy said the group will continue to focus its attention on growing its market share in USA.

“We’re just following the blueprint of what we did in the UK – great businesses with great people and great heritage but underinvested – so we’re expanding the stores, we’re relocating them, redesigning them,” Duffy said.

“Everything that we did in the UK we’re applying to what we’ve acquired and it’s working very well.”

After posting its maiden full-year results since its IPO in June the chief executive said it will continue to invest in “acquisitions, new store opportunities, online, merchandising and marketing” to gain more of the US market share.

Pre-tax profit soared 181% to £20.1m in the year to April 28, driven by a 22.5% boost in group revenue to £773.5m.

Adjusted EBITDA for the group, which includes Mappin & Webb, Goldsmiths, Watches of Switzerland and Mayors in the US, climbed 17.6% to £68.8m