Weak UK Demand Hits Watches of Switzerland Sales

Revenue at Watches of Switzerland was flat for the full year as the soft UK market offset a strong performance in the US. 

Group sales came to GBP 1.54 billion ($1.95 billion) for the 12 months ending April 28, the UK-based company reported last week. Revenue in the UK and Europe fell 5% to GBP 846 million ($1.07 billion), with macroeconomic conditions in the UK and a shortage of supply for key luxury watch brands impacting results, it explained. Sales in the US grew 6% to GBP 692 million ($878.7 million) as demand remained strong in all regions and the company opened new stores. 

Luxury watch sales rose 1% to GBP 1.35 billion ($1.71 billion), while revenue from jewelry dropped 14% to GBP 102 million ($129.5 million). 

Group sales for the fourth quarter climbed 3% to GBP 380 million ($482.6 million), buoyed by increased demand in the US and a strong showing in the Rolex certified pre-owned segment. Revenue from pre-owned and vintage pieces doubled during the quarter compared to the equivalent period a year earlier, while jewelry saw a “significant improvement” during the three months, Watches of Switzerland noted. 

Revenue in the UK and Europe slipped 4% to GBP 190 million ($241.2 million). Sales in the US advanced 10% to GBP 190 million. 

Watches of Switzerland expects revenue for fiscal 2025 to reach between GBP 1.67 billion and GBP 1.73 billion ($2.12 billion and $2.2 billion), up 9% to 12% at constant currency rates, it noted. The projected increase reflects the expectation of increased supply from key watch brands, as well as store openings and closures to take place during the period. Additionally, the guidance includes the realization of revenue from the company’s acquisition of Ernest Jones and Roberto Coin, it noted. 

“We finished the year strongly, with fourth-quarter sales in line with guidance and ahead of consensus,” said Watches of Switzerland CEO Brian Duffy. “We enter fiscal 2025 with cautious optimism. We have a terrific program of showroom developments on both sides of the Atlantic…. The inherent strength of the categories we operate in, coupled with our superior business model and retail expertise, continues to set us apart.” 

The company will announce its full results for the 2024 fiscal year on June 27, it added. 

Image: A Watches of Switzerland store in Mall of America. (Watches of Switzerland)