Watches of Switzerland, the leading luxury watch retailer in the UK, has reported impressive sales growth and increased momentum in the US market during the third quarter. Despite the current downturn affecting the luxury sector due to the coronavirus outbreak, the company remains resilient. As the owner of luxury brands such as Goldsmiths and Mappin & Webb in the UK, and Watches of Switzerland and Mayors in the US, the company stated that it is on track to meet its full-year performance goals.
In Q3, the company saw a significant increase in group revenue, with a rise of 12.8% to £257.9 million. Like-for-like sales also grew by 6.8%. This growth can be attributed to strong sales of luxury watches in both the UK and US markets, with online sales in the UK increasing by 20.8%. The demand for popular luxury watch brands continues to surpass supply, especially during the holiday season. Watches of Switzerland also made progress with its showroom strategy, refurbishing three showrooms in the UK and opening new ones.
Brian Duffy, the CEO of Watches of Switzerland, expressed optimism and emphasized the company’s strong brand partnerships and market-leading position. As the largest retailer for luxury watch brands including Rolex, Cartier, Omega, TAG Heuer, and Breitling in the UK, the company saw double-digit growth across several brands in the third quarter. Despite the competitive market environment, the company had a successful Christmas trading period in the UK and positive sales during the holiday season in the US.
The company’s jewellery business also performed well, with positive customer feedback on new ranges. In the US, Watches of Switzerland is gaining momentum, particularly through its investment in Mayors, which has been met with a promising customer response. The company sees significant growth potential in the highly fragmented luxury watch market in the US.
Looking ahead, the company is confident that improved visibility of luxury watch supply will enable it to meet its annual guidance for the final quarter of the financial year. However, Watches of Switzerland remains cautious about the potential impact of the ongoing coronavirus outbreak on the global market and trade. Despite this concern, the company’s strong business fundamentals and focus on supply-driven operations positions it well to maintain its leading position in luxury watch retail in the UK and become a leader in the US market.