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Luxury Goods

Watches of Switzerland revenues hit £905m in FY21

Overall, sales were supported by a more than doubling of sales online, as group ecommerce sales rocketed 120.5%

Watches of Switzerland has seen its revenue rise by 13.3% to £905.1m in the year ended 2 May, 2021, with revenue up by 17.9% against FY19. 

Over the same period, its pre-tax profit hit £63.7m, up from the £1.5m reported in FY20, while EBITDA rose by 34.9% to £105.4m.

Despite noting “significant” headwinds amid the pandemic, the group reported “robust” growth across its UK business, with revenue rising by 3.6% to £606.5m, up from £585.5m the year prior. This was bolstered by strong sales to domestic customers, which offset lower tourist and airport trade during the period.

Overall, sales were supported by a more than doubling of sales online, as group e-commerce sales rocketed 120.5%, with strong UK ecommerce sales alongside an “encouraging” start in the US market. 

Brian Duffy, CEO said: “I am delighted to report a year of strong growth.  Our performance is testament to the resilience and hard work of our colleagues, good support from our brand partners and our proven model, including our leading online platform and bold, impactful marketing approach. The luxury watch market remains predominantly supply-driven with demand exceeding product availability for key brands and models. 

“In spite of the headwinds faced during the year, our teams delivered fantastic results.  We generated outstanding growth and strong momentum in the US and are well positioned for future growth.  In the UK, where our stores were closed for approximately half the year, we further enhanced our market-leading position.”

He added: “Trading has remained strong in both the UK and the US since the year-end. Our customer has accumulated disposable wealth and our category is an attractive option.  Our growth projections reflect our best estimate of future supply based on our past experience of investment and expansion. 

“The momentum we bring into FY22 underpins our confidence for the financial year ahead.  Sustained capital investment will continue to support our growth plans in the UK.  Our success in the US proves our model works in this market and we will continue to invest in our stores and new projects, whilst pursuing selective acquisitions at attractive returns in our ambition to become the clear leader in the market.”

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