Watches of Switzerland has reported a surge in showroom sales, shrugging off cost-of-living pressures amid what it called “enduring” demand for luxury watches and jewellery.
The London-listed retailer said its financial performance over the first half of the year had been better than expected. Revenues rose by 15% to £974 million in the six months to November compared with the same period last year, at constant currencies.
US and UK growth
The growth was driven largely by the US, where revenues surged by 22% year on year, while UK sales jumped by 9%.
The company reported a “standout” performance in its showrooms, where luxury jewellery sales soared by 31%. Sales growth accelerated in flagship boutiques and across many regional cities in the UK, the retailer said.
Brands and outlook
Watches of Switzerland sells high-end brands such as Rolex, Cartier and Patek Philippe, and partners with jewellery brands including Roberto Coin, Goldsmiths, Mappin & Webb and Mayors.
Chief executive Brian Duffy said the retailer was reporting 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.
Earnings guidance
Adjusted earnings for the company are expected to be between £87 million and £89 million for the first half. Watches of Switzerland now expects full-year revenues to grow at the “upper end” of its previous guidance, between 7% and 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.”
