Watches of Switzerland have recorded soaring sales across all markets in which it operates and is gearing up for a blockbuster Christmas.
The luxury retailer reported revenues up 44.6% year-on-year to £586.2m in the 26 weeks to October 31, which was also a 40.8% increase compared with the year prior.
Watches of Switzerland chief executive Brian Duffy said he was “pleasantly surprised” that ecommerce sales continued to boom despite the full reopening of its stores - ecommerce sales rose 28.7% compared with the same period last year.
The retailer’s UK arm continued to thrive with domestic shoppers, up 42.3% year-on-year to £418.6m, and Duffy said he is already seeing green shoots of recovery in airports as both business and leisure passengers return in the lead up to Christmas.
A better Christmas for sales
It has also seen great growth in its “by appointment only” concierge service, which now accounts for 40% of total UK sales.
The watch specialist has raised its profit guidance for the full year, with adjusted EBITDA expected to be in the range of £81-83m.
Duffy said the retailer is “very bullish” about the upcoming Christmas season.
“We all recall last Christmas as being probably the most disappointing in many of our lives, with the lack of family celebrations, the inability to go out, so there’s definitely a mood of celebration this year that’s going to translate through to gift giving,” he told Retail Week.
“The starting gun that everyone has been looking at for Black Friday is actually starting before then.”
“People have accumulated wealth overall, and we’re seeing early signs of spending. We’re not anticipating anymore disruption in terms of lockdowns, we’re seeing the return of traffic, especially in airports and they tend to be good for us for the obvious reason that people are going away for Christmas and buying gifts, or business passengers are taking advantage of the convenience.
“The starting gun that everyone has been looking at for Black Friday is actually starting before then.”
Watches of Switzerland also reported strong momentum in the US, a market that Duffy previously said was “underinvested”.
The group’s US revenues grew 50.2% to £167.6m in constant currency compared with the previous year, and 66.7% on the year before that.
The retailer is thus seeking to expand its US store estate, with new acquisitions bringing the total to 36 stores across 12 states.
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