Watches of Switzerland Group has reported impressive financial results for the first half of the year, driven by strong growth in both the UK and US markets. The company recorded a 31% increase in revenue, reaching £765 million, with the UK and Europe seeing an 8% rise to £454 million, and the US experiencing a remarkable 86% rise to £311 million.

Luxury jewellery sales outpaced luxury watch sales during this period, with a 38% increase to £56 million, compared to a 31% increase to £667 million for watches. Adjusted EBITDA rose by 26% to £104 million, while adjusted EBIT rose by 29% to £87 million. Statutory profit before tax also saw a significant growth of 28% to £83 million.

The company attributed its strong performance to sustained demand for luxury watches and jewellery, which was driven by higher average selling prices and increased sales volume. Watches of Switzerland also highlighted the success of its expansion and refurbishment program for showrooms, as well as a 7% increase in group e-commerce sales compared to the previous year.

In the US, the company opened new showrooms and ended the first half with a total of 24 multibrand showrooms and 23 monobrand boutiques, marking an increase from 19 and 14 respectively in the previous year. CEO Brian Duffy revealed that Watches of Switzerland has a growing pipeline of new showrooms and boutiques, including a plan to open a third multibrand showroom in Manhattan in 2023.

Meanwhile, in the UK, the company’s performance was driven by domestic shoppers, as attracting tourists has been challenging since the abolition of tax-free shopping for visitors. Watches of Switzerland invested in 10 new showroom openings in the UK, including four monobrand boutiques and a multibrand space at Battersea Power Station in London. The company also made improvements to its flagship Regent Street multibrand space and the Goldsmiths Luxury concept.

Despite closing some showrooms, Watches of Switzerland ended the first half with a total of 91 multibrand showrooms and 46 monobrand boutiques. The company also opened four monobrand boutiques in Europe, with trading in line with expectations, and plans to open two more in the current half. Watches of Switzerland is confident that the strength of the luxury watch and jewellery categories, along with its brand partnerships and successful business model, will contribute to long-term sustainable sales growth.

Sources:

1. WatchPro
2. Retail Week