Luxury Goods

Watches of Switzerland sales soar amid ‘thriving’ market demand

UK luxury jewellery sales increased by 55.7% which the group said reflects ‘continued market demand and continued improvement in ranging’

The Watches of Switzerland Group PLC has reported its revenues surged 27.9% year-on-year to £348.1m in the 13 weeks to 30 January 2022 (Q3 FY22), and 36.5% from pre-Covid levels.

The group’s year-to-date revenues for the 39 weeks to 30 January 2022 (9M FY22) also rose by 38% year-on-year from £686.8m to £934.3m, up 39.2% from FY20.

In the third quarter, jewellery sales surged 88.4% year-on-year with reported improvement in ranging and growth from the Betteridge acquisition, and the opening of the group’s first Bvlgari boutique.

Additionally, sales for luxury watches increased by 21% year-on-year, with demand in both the UK and the US reportedly exceeding supply. Growth in other luxury watches was also up 111.9% from Q3 FY21.

However, Q3 FY22 group ecommerce sales were down 1.1% year-on-year when UK stores were open for four weeks out of 13 due to Covid-19 lockdowns, although this is up by 123.1% from Q3 FY20. 

In the UK, Q3 FY22 UK revenues increased 20.1% to £223.5m from £186.1m in Q3 FY21, and by 22% from pre-Covid levels. The Watches of Switzerland Group said its UK performance was driven by a “thriving” domestic clientele.

Its sales of luxury watches increased by 15.2% year-on-year in the UK, with 77.9% growth in other luxury watch brands excluding Rolex, Patek Philippe and Audemars Piguet. Additionally, luxury jewellery increased by 55.7% which the group said reflects “continued market demand and continued improvement in ranging”.

Meanwhile, the group’s strategy to expand in Europe has progressed, securing six mono-brand boutiques in Sweden, Denmark and Republic of Ireland which will open in H1 FY23. Additionally, three new mono-brand boutiques will open in the UK in the fiscal year.

Brian Duffy, CEO, said: “I am pleased to report continued strong momentum for our group following a successful Christmas trading period. We have delivered impressive growth in both luxury watches and luxury jewellery in both the UK and US markets demonstrating the value of our portfolio of world leading partner brands. 

“In recognition of our colleagues’ hard work and to ensure they have the opportunity to share in the success we deliver as a business, we are pleased to have provided all our colleagues with a gift of 50 free shares and access to employee share save schemes in the UK and US.

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