Watches of Switzerland profits soar in maiden results

The luxury watch specialist’s pre-tax profit nearly trebled, up 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 comprises Mappin & Webb, Goldsmiths, Watches of Switzerland and Mayors in the US, climbed 17.6% to £68.8m.

Watches of Switzerland’s full-year sales uplift was driven by its luxury watch division, which reported 28.3% uplift in revenue to £631.4m, representing 82% of group sales.

Sales of luxury jewellery increased 3% during the year, while UK and US like for likes increased 10% and 7% respectively.

The retailer’s ecommerce sales rose 18% during the period.

Watches of Switzerland, which floated with a £647m valuation in May, ploughed £33.8m into opening seven new showrooms during the year, as well as refurbishing 11 others.

Chief executive Brian Duffy said: “I am delighted that the group’s five-year transformation has culminated in a successful IPO on the London Stock Exchange in June this year and I would like to thank all our colleagues for their huge contribution to that achievement.

“The 2019 financial year has been a fantastic year for The Watches of Switzerland group. We have continued our trajectory of strong, profitable growth in our core markets of the UK and the US with an increase in sales of 23% during the year. Current trading remains encouraging and we are confident of meeting the Board’s expectations for the financial year ending April 2020.

“We are the UK’s leading luxury watch retailer, hold a growing position in the US market, and operate in a highly attractive market in which demand for luxury watches generally outstrips supply. We are well positioned to deliver on our strategy and look forward to achieving continued growth in the year ahead.”