Watches of Switzerland Q1 revenues hit £391m
This year will also see the group relocate its current 900 sq ft Rolex Boutique on Bond Street to a new 7,200 sq ft location on Old Bond Street
Register to get 1 more free article
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
The Watches of Switzerland Group PLC has reported a 31% rise in group revenues year-on-year from £297m to £391m for the 13 weeks to 31 July 2022 (Q1 FY23), benefiting from de-stocking and pent up demand as showrooms reopened following Covid-19 lockdowns.
Luxury watches sales grew 32% to £342m, representing 87% of revenues, while luxury jewellery sales increased 36% to £27m. Early trading for FY23 is reportedly in line with expectations, with five further showrooms opening in the year.
Overall, the UK saw revenues up 7% year-on-year to £239m, driven by “resilient” domestic clientele and ongoing improvement in its airport business as traffic recovers, with all airport showrooms now reopened.
Additionally, US revenues jumped 100% from £76m in Q1 FY22 to £152m in Q1 FY23, with growth driven by higher volumes, the success of the group’s model and the strength of client demand
The group’s ecommerce sales also continued to grow at 14% year-on-year, with ongoing investment in the company’s multi-channel strategy.
Meanwhile, Xenia, the group’s client experience programme, is now embedded across all showrooms to enhance client relationships. The Watches of Switzerland Group also opened its first European mono-brand boutique in Stockholm.
The group has also announced that it will relocate its current 900 sq ft Rolex Boutique on Bond Street to a new 7,200 sq ft location on Old Bond Street in FY23.
Looking ahead, the group maintains its previous guidance for FY23 which anticipates a “potentially more challenging” trading environment in the second half of FY23. Overall, revenues are expected to be £1.45bn-£1.50bn, adjusted EBITDA to be flat to +0.5%, and adjusted EBIT to be between £157m-£169m.
Brian Duffy, chief executive officer, said: “The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter. Despite the well-publicised concerns about the macro-environment, demand for our products remains robust with client registration of interest lists continuing to extend.
“We continue to focus on attracting new clients and growing market share in the UK and US. We have seen positive early results from our expansion into Europe. As we continue to invest in our multichannel model and new incremental projects, we remain confident in our long range plan.”
