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Watches of Switzerland has reported a 11% decline in adjusted EBITDA amid a 2% rise in group revenues to £1.5bn at constant currency for the 52 weeks ended 28 April 2024.
Its US sales increased 11% to £692m, while its UK and Europe sales dipped by 5% to £846m, impacted by macroeconomic conditions in the UK.
Similarly, in FY24, its luxury watch sales, which represent 87% of group revenues, increased by 3%; however, its luxury jewellery sales declined by 13%.
By the end of 2024, the group had opened 99 multi-brand showrooms (FY23: 89) and 68 mono-brand boutiques (FY23: 57) in the UK.
Looking ahead, the group said that following the more challenging trading conditions of FY24, it is “cautiously optimistic” about trading in FY25.
Additionally, according to the group’s FY25 guidance, it expects revenues to increase by 9% – 12% to £1.67bn – £1.73bn.
Brian Duffy, chief executive officer, said: “I am proud of the performance that our team delivered this year in what was undoubtedly a more challenging market. We cemented our position as a leading international luxury watch and jewellery retailer and delivered further market share gains in both the UK and US, driven by our proven, differentiated business model. In particular, our US business went from strength to strength, growing 11% and will soon represent half of group sales.
“The UK market is starting to show signs of stabilisation. In FY24, UK and Europe sales were down 5% impacted by significant price increases overall at a time of reduced consumer confidence influencing discretionary spending, and we see these pressures easing in FY25.”
Duffy added: “During the year, we continued to invest for high-quality growth across showroom projects and strategic acquisitions including the 15 Ernest Jones showrooms acquired last November, and the acquisition of Roberto Coin Inc. post year end, which dramatically accelerates our luxury branded jewellery strategy.
“Our strategic momentum underpins our confidence in our FY25 guidance and Long Range Plan objectives of doubling sales and profit by 2028, capitalising on our leading market positions and the unique growth opportunities ahead.”
