Watches of Switzerland, a luxury retailer, has overcome challenging circumstances in the first half of the year and achieved positive results. Despite facing significant obstacles, such as store closures due to the COVID-19 pandemic, the company was able to solidify its position in the market and achieve impressive sales numbers. Additionally, Watches of Switzerland saw notable growth in online sales, an increase in core earnings, and a substantial reduction in debt.

During the first half of the year, the company faced various challenges, including store closures. However, it managed to minimize the impact, with a slight decrease in revenue. The second quarter saw a significant rebound, with revenues rising. The UK market played a crucial role in limiting the decline in revenues, despite enforced store closures and reduced foot traffic. The company’s tourist and airport business, on the other hand, experienced a significant decline.

Despite losses in physical stores, Watches of Switzerland offset those losses through impressive growth in online sales. E-commerce sales surged, driven by digital marketing campaigns and impactful events. The company also expanded its presence in the UK by opening new monobrand boutiques. In the US, the company’s sales also increased, highlighting the adaptability of its business model. The recent acquisition of Analog Shift is expected to strengthen its position in the US market.

Moving into the second half of the year, the company continued to perform well. Group revenues increased, with UK sales and online sales showing significant growth. However, the company’s UK store network traded for only a fraction of potential hours due to lockdown measures.

In addition to strong revenue numbers, Watches of Switzerland also achieved impressive earnings growth. Adjusted EBITDA and statutory operating profit saw significant increases. The company also successfully reduced its net debt.

Brian Duffy, CEO of Watches of Switzerland, expressed satisfaction with the company’s performance. He highlighted the resilience of the luxury watches category and the strength of their business.

Based on the upwardly revised outlook, Watches of Switzerland expects full-year revenues to range higher than previously anticipated. The company also anticipates an increase in the EBITDA margin and adjusted EBITDA margin, showcasing its optimism and confidence in its ability to continue on a path of growth and success.

Useful links:

Watches of Switzerland Q2 2020 Results
Watches of Switzerland Raises Outlook for 2021