Watches of Switzerland has reported a surge in showroom sales, defying cost-of-living pressures amid what it calls "enduring" demand for luxury timepieces and jewellery.
The London Stock Exchange-listed retailer said its financial performance in the first half of the year exceeded expectations.
Strong Half-Year Results
Revenues climbed 15% to £974 million in the six months to November, compared with the same period last year and at constant currencies.
Growth was mainly driven by the US market, where revenues rose 22% year on year, while UK sales increased by 9%.
Jewellery Sales Soar
The Leicester-based company highlighted a "standout" performance across its showrooms, with luxury jewellery sales up 31%.
Sales growth accelerated in flagship boutiques and across numerous regional cities in the UK, the retailer confirmed.
Watches of Switzerland stocks brands including Rolex, Cartier and Patek Philippe, and partners with jewellery names such as Roberto Coin, Goldsmiths, Mappin & Webb, and Mayors.
Outlook and Analyst Views
Chief executive Brian Duffy described the results as a "strong" performance "despite an unsettled macroeconomic backdrop."
"This reflects the strength of our market position, the quality of execution from our teams, and enduring demand for luxury watches and jewellery," he said.
Adjusted earnings for the first half are expected to be between £87 million and £89 million. The company now anticipates full-year revenue growth at the "upper end" of its previous guidance of 7% to 10%.
Mark Crouch, market analyst at eToro, said: "Watches of Switzerland is offering a striking reminder that not all consumers are feeling the economic squeeze equally."
"While much of the retail sector wrestles with cautious shoppers and stretched household budgets, demand for luxury watches and jewellery remains remarkably strong, particularly in America. For customers willing to spend thousands on a Rolex or an expensive piece of jewellery, the wider cost-of-living crisis appears a distant concern."
