Luxury Goods

Watches of Switzerland hails record revenues of £1.23bn

The group expects FY23 revenues to hit £1.45bn-£1.50bn, and it plans to open a new showroom in Battersea, London

The Watches of Switzerland Group has reported its group revenues surged 40% year-on-year from £905m to £1.23bn in the 53 weeks ending 1 May 2022 (FY22), marking a “record” year of revenue and profitability.

All in all, UK revenues were up 36% to £810m and US revenues were up 48% to £428m.

FY22 luxury watch sales increased 36% year-on-year from £788m to £1.04bn, with demand for luxury watches continuing to be “very strong” in both the UK and the US, and exceeding supply.

Additionally, luxury jewellery sales were up 86% in FY22, up from £61m to £109m, with improvement in ranging, growth from the Betteridge acquisition, and the opening of the group’s first BVLGARI mono-brand boutique.

Group e-commerce sales were also up 5% year-on-year as showrooms were closed for approximately 26 weeks during the Covid-19 lockdown, although this was up 128% compared to pre-pandemic levels.

Looking ahead to FY23, the Watches of Switzerland said it anticipates that disruption from the pandemic is now largely behind the group, with ongoing recovery in footfall and airport traffic. 

The group expects FY23 revenues to hit £1.45bn-£1.50bn, and it plans to open a new showroom in Battersea, London, as well as continuing the roll out of the Goldsmiths Luxury showroom format.

It also plans to continue the expansion of the mono-brand portfolio in the UK and US, and enter into the European market through the opening of six mono-brand boutiques in Sweden, Denmark and the Republic of Ireland.

Brian Duffy, chief executive officer, said: “We delivered an outstanding performance in both the US and UK, supported by broad-based sales growth across our portfolio of world leading partner brands and driven by domestic clientele. We were also delighted to announce our forthcoming entry into the European market.

“The luxury watch and jewellery markets are dynamic and our group investment-led model continues to gain positive momentum. Consumer desire for ‘Super High Demand’ brands (Rolex, Patek Philippe and Audemars Piguet) continues to exceed supply and other luxury watch brands are enjoying exceptionally strong demand and sales.”

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