Watches of Switzerland has clocked up a surge in profits and insisted it has built “strong momentum” as it bounces back from the coronavirus crisis. 

Watches of Switzerland flagship store

 Watches of Switzerland’s group revenue climbed 37% on a reported currency basis to £1.24bn

The watch specialist almost doubled statutory pre-tax profit from £64m last year to £126m in the 12 months to May 1. Statutory operating profit ballooned 74% to £142m, while adjusted EBITDA grew 54% to £162m.    

Group revenue climbed 37% on a reported currency basis to £1.24bn.

Top-line growth in Watches of Switzerland’s core UK business hit 34% to £810m, while its US division grew at the quicker rate of 44%, as sales reached £428m. 

Luxury watch sales jumped 36% with Watches of Switzerland insisting that demand for such products is “consistently exceeding supply”, despite the mounting cost-of-living crisis battering millions of households across the UK.

Luxury jewellery sales surged at an even faster rate, growing 86% during the year. 

The retailer’s online sales advanced 5% across the 12-month period and are now up 128% on pre-pandemic levels.  

Since its financial year-end, Watches of Switzerland has launched stores in mainland Europe, opening a Stockholm store in partnership with Breitling last month. It has secured sites for five more mono-brand boutiques in the Republic of Ireland, Sweden and Denmark, which will open during its current financial year.  

Watches of Switzerland boss Brian Duffy said: “We are undoubtedly operating in a growing segment, but it is our distinctive and proven business model, the strength of our brand partnerships, our international scale, our bold marketing campaigns and our dedication to client service which sets us apart.

“Taken together, these inherent strengths have seen us attract new consumers and continuously gain market share, strengthening our position as the destination for luxury watches and luxury jewellery.”

He added: “We enter FY23 with strong momentum, with consumer demand continuing to outpace supply, and within this environment we are benefiting from our strength, both in showrooms and online.

“Watches of Switzerland is uniquely positioned within a large and growing market, and we look to the future with confidence as we focus on capitalising on the considerable sustainable growth opportunities available to us.”

  • Get the latest fashion news and analysis straight to your inbox – sign up for our weekly newsletter

Topics

Related Companies