Watches of Switzerland has expected its FY21 pre-tax profits to range between £104m and £107m following a “very robust performance” throughout the year.
Group revenue rose 13% to £905.1m from £810.5m, with UK revenue increasing 3.6% despite stores being closed for 26 weeks of the year and “significantly reduced tourism”.
In line with the results, the group also confirmed plans to repay the £45m Coronavirus Large Business Interruption Loan Scheme facility as a result of a “continued strong business performance”. In addition, net debt reduced to £43.9m as of 2 May 2021 from £129.7m in April 2020.
Looking forward, the group has predicted that “assuming there are no disruption” or any national lockdown, total revenue next year will reach between £1bn and £1.1bn.
The retailer also obtained approval to launch the Watches of Switzerland Group Foundation which will provide essential support for communities in the UK and in the US with an initial contribution of £1.5m with plans to build this during FY22.
Brian Duffy, CEO, Watches of Switzerland, said: “In the UK, we delivered a very robust performance, overcoming a total of 26 weeks of store closures and hugely reduced travel and tourism business.
“Looking ahead, we are confident in our plans to continue investing for growth and to sustain the momentum we have built into FY22 and beyond. We look forward to providing an update on our full-year results on our strategy to further enhance our leading position in the UK and become a leader in the US luxury watch market.”