Watches of Switzerland clocks up rise in profits as store expansion drives sales

The luxury watch and jewellery retailer posted a 28% uptick in statutory pre-tax profit to £83m during the 26 weeks to October 30.

Statutory operating profit rose at the same rate to £93m, while adjusted EBITDA increased 26% to £104m. 

Watches of Switzerland posted a 31% uplift in revenues to £765m on a reported basis. Sales in the UK and Europe climbed 8%, while sales in its fast-growing US market surged 86% to £311m. 

The retailer said its top-line growth had been driven by “excellent progress” with its store expansion and refurbishment programme. 

Watches of Switzerland spent £27m during the period on 20 new showrooms and seven store revamps. That compared to capital expenditure of £20m on eight new locations during the same period a year ago.  

Ten of the new stores opened during the half were in its core UK market, including its new multi-brand showroom at Battersea Power Station in London. 

Alongside its bricks-and-mortar progress, Watches of Switzerland also delivered a 7% increase in ecommerce sales across the group. 

The retailer insisted that, despite the cost-of-living crisis, it had observed “continued strong demand for luxury watches and jewellery” across its markets.

Watches of Switzerland boss Brian Duffy said: “Our proven business model, international scale, bold marketing and dedication to client service truly sets us apart, and our client registration lists continue to extend as we continue to attract new clients as well as retain a loyal base of existing ones.”

Duffy added that trading during its second half to date had been “in line with our expectations” and said its full-year profit forecast remained unchanged. 

Watches of Switzerland expects to deliver an adjusted EBIT of between £163m and £175m, on sales of £1.5bn-£1.55bn.

• Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday