Watches of Switzerland Revenue Strengthens

RAPAPORT… Group revenue at Watches of Switzerland increased in the first fiscal quarter amid strong consumer demand in the US and UK and a spike in online traffic.

Sales grew 96% year on year to GBP 297.5 million ($414.3 million) in the three months ending August 1, as the US and UK divisions reported solid domestic growth in sales of luxury watches and jewelry, the company said Tuesday. E-commerce sales climbed 16% over the same period a year ago, even as brick-and-mortar stores reopened.

“Our US business goes from strength to strength, with excellent, broad-based growth continuing to characterize our performance in this market,” said Watches of Switzerland CEO Brian Duffy. “Trading in the UK has been extremely strong, driven by sustained high demand from domestic clientele.”

The sharp hike also reflects a favorable comparison with the first quarter a year ago, when Covid-19 forced a company-wide store shutdown for six weeks in the UK and four weeks in the US, the retailer noted.

Luxury watch sales jumped 97% to GBP 259.3 million ($361.1 million), while revenue from jewelry surged 99% to GBP 20.1 million ($28 million).

The company has maintained its full-year revenue guidance. It plans to open two new stores in the US and one in the UK this year.

In addition to its Watches of Switzerland brand, which operates in the US and UK, the company also owns UK-based Goldsmiths and Mappin & Webb, along with Mayors, which it purchased from Birks Group in 2017.

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