Watches of Switzerland Sales Surge

RAPAPORT… Watches of Switzerland reported strong sales growth in its fiscal fourth quarter, reflecting increased demand for luxury jewelry and timepieces, as well as a boost from newly opened and acquired stores.

Group revenue jumped 39% year on year to GBP 304 million ($379.8 million) over the 13 weeks ending May 1, the UK-based company said last week. The equivalent quarter in 2021 comprised 14 weeks.

In the UK, which accounted for just over half of group revenue, sales grew 33% to GBP 168 million ($209.9 million). Watches of Switzerland opened three single-brand boutiques in the region during the period. Sales in the US rose 48% year on year to GBP 136 million ($169.9 million), with the company opening a flagship store in Ohio.

Group revenue for the full year climbed 37% to GBP 1.24 billion ($1.55 billion). Luxury jewelry sales for that period skyrocketed 79%, reflecting a strong market, the acquisition of the Betteridge brand, and the opening of the company’s first Bulgari stand-alone boutique.

“The luxury watch and jewelry markets are dynamic and our group investment-led model continues to gain positive momentum,” said Watches of Switzerland CEO Brian Duffy. “Consumer desire for ‘super-high-demand’ brands (Rolex, Patek Philippe and Audemars Piguet) continues to exceed supply, and other luxury watch brands are enjoying exceptionally strong demand and sales. Luxury-jewelry demand is also very positive.”

The retailer lowered its net debt to GBP 14 million ($17.5 million) as of May 1, 2022, compared with GBP 44 million ($55 million) as of May 2, 2021.

In fiscal 2023, Watches of Switzerland expects group sales to reach GBP 1.45 billion to GBP 1.5 billion ($1.81 billion to $1.87 billion). The forecast assumes that the “pandemic is now largely behind us, with ongoing recovery in footfall and airport traffic,” the company noted.

Image: The Watches of Switzerland Betteridge store in Vail, Colorado. (Watches of Switzerland)