Revenue Jumps at Watches of Switzerland

RAPAPORT… Watches of Switzerland saw sales and profit jump in the first fiscal half as the market recovered strongly in both the UK and the US.

Revenue jumped 42% year on year to GBP 586.2 million ($776.4 million) for the six months ending October 26, the jewelry and timepiece retailer reported last week. Compared with the same period of 2019, sales advanced 37%.

The increases reflected a favorable comparison with last year’s Covid-19 lockdowns, which had a more notable effect in the UK, where the company is headquartered, management explained. Its British stores closed for seven weeks ending June 2020; locations in the US began to reopen in early May 2020, with one store remaining shut until September of that year. The closures cost the business around GBP 80 million ($106 million) in sales, it estimated.

Revenue from luxury watches rose 41% year on year during the fiscal half year amid strong demand for the category, though a shortages of Rolexes limited sales. Jewelry — a much smaller business for the company — performed better, with revenue soaring 55%. Group profit leaped 84% to GBP 53.1 million ($70.3 million).

“Demand for bridal and diamond jewelry has been particularly strong with the reintroduction of weddings [following the end of] Covid-19 restrictions,” the company commented.

Watches of Switzerland owns an international store brand that shares the company’s name, as well as the US chain Mayors, and UK-based Mappin & Webb and Goldsmiths.


Image: A Watches of Switzerland store in Soho, London. (Watches of Switzerland)