Watches of Switzerland revenues tick higher; growth plans outlined

Watches of Switzerland surged on Tuesday as it reiterated full-year guidance, posted a jump in second-quarter revenue and outlined plans to more than double sales and profits by FY28.

In the 13 weeks to 29 October, group revenue ticked up 1% on a reported basis versus the same period a year earlier, to £379m. This was a 5% increase at constant currency.

UK and Europe sales were flat at £214m and US sales were up 4% on a reported basis at £165m.

The company said that demand for luxury watches remains "robust" and continues to exceed supply, while average selling prices continue to increase.

Chief executive Brian Duffy said: "I am pleased to report an improved Q2 trading performance, notwithstanding the difficult consumer environment.

"We sustained strong momentum in the US where we delivered +11% constant currency sales growth. We are also encouraged by the early response to the Rolex Certified Pre-Owned programme which launched in the UK in September, following the US launch in July, as clients react strongly to the authenticity and guarantee of quality that the Certified Pre-Owned seal represents."

He said the UK performance was delivered despite the impact of several high turnover Goldsmiths and Mappin & Webb showrooms being closed for upgrade and trading from pop-up locations during the quarter. These will reopen pre-Christmas.

In a separate release, the luxury watch retailer announced plans to more than double sales and profits by FY28, and said it was aiming to surpass the £3bn revenue milestone.

The group also highlighted "multiple significant organic and inorganic growth opportunities across UK, US and Europe".

At 0950 GMT, the shares were up 8.7% at 563.87p.