Watches of Switzerland results tick higher on impressive sales

By

Nigel TAYLOR

Published
Dec 9, 2021

Like clockwork, Watches of Switzerland Group’s latest results continued to tick consistently higher.

There was another strong performance from the luxury watches and jewellery retail group for the 26 weeks ending 31 October, underpinning its recently upgraded guidance.

That meant a “strong, broad-based sales performance resulting in significant growth in H1 FY22 profit.”

And it translates into group revenue reaching £586.2 million from £414.3 million a year ago. That’s up 44.6% vs H1 FY21 and up 40.8% vs H1 FY20, both in constant currency. 

Core UK ops performed “robustly”, generated by a continuing thriving domestic clientele, with revenue hitting £418.6 million. It was up 42.3% vs H1 FY21 and 31.8% vs H1 FY20 when 33.6% of group sales were generated by tourists and airports (all in the UK) vs “negligible tourist and significantly reduced airport business in H1 FY22”.

There was also an “outstanding US performance” delivered with revenue up 50.2% in constant currency vs H1 FY21 and by 66.7% vs H1 FY20 to £167.6 million.

Group e-commerce sales also grew 28.7% on last year.

Adjusted EBITDA leapt 58.8% to £82.8 million while the adjusted EBITDA margin rose to 14.1% from12.6%. Statutory operating profit lifted 58.6% to £72.3 million.

WoS cited continued strong demand for luxury watches and jewellery, with growth led by “a significant increase in volumes of non-supply constrained brands”. Each brand also showed positive average selling price (ASP) growth, it noted.

It also said Q3 had begun with “continued strong momentum” and the business was “well-positioned heading into the Holiday period".  

CEO Brian Duffy said: “We introduced several initiatives and enhancements during difficult trading circumstances last year which have become permanent features of the business, enabling us to continue to maintain high engagement levels with our customers whilst providing an exceptional experience and delivering attractive returns.”

He added: “Our success in both the UK and the US has been testament to our robust multichannel business model, the enthusiasm and commitment of our people, and the attractive dynamics of our category where demand continues to outpace supply.”