Watches of Switzerland posts flat sales offset by ‘strong momentum in the US’

In the 26 weeks to October 29, the luxury watch retailer posted a 2% increase in group revenue to £761m on a constant currency basis, while revenue was flat at reported rates.

Revenue in the UK and Europe declined 4% to £433m, while the US reported an 11% increase in revenue on a constant currency basis to £328m.

Statutory profit before tax fell 20% from £83m to £67m in the same period, while adjusted EBITDA declined 10% to £94m.

The group said its outlook for financial year 2024 “remains unchanged” and does not reflect any expectation of an improvement in consumer confidence.

Chief executive Brian Duffy said: “Our good first half performance reflects the group’s growing leadership position in our chosen markets as the strength of our longstanding brand partnerships and our proven business model continue to drive our performance forward. 

“We are particularly pleased with performance in the US, where we grew revenue 11% in the period, and the US now comprises 43% of group revenue. The consumer environment in the UK continues to be more challenging and UK and Europe revenue was -4% in the period, impacted by the timing of product intake in Q1 FY24 and temporary showroom closures for refurbishment.

“We have expanded our retail network at pace in the first half, opening a total of 19 showrooms globally, while investing in elevating the luxury experience for our clients through significant refurbishments across seven showrooms. 

“Looking ahead, we are well positioned for a good holiday trading period as we present our clients with our strongest ever range of luxury watches and luxury branded jewellery. We remain on track to deliver full-year guidance, with our confidence for H2 underpinned by the reopening of several high revenue showrooms that were closed for upgrade in H1.

“Looking further ahead, we are confident in our long-range plan objectives of doubling sales and profit by 2028  through capitalising on our leading market positions and the unique growth opportunities available to us as the world’s largest luxury watch retailer.”