Shares in Watches of Switzerland (WOSG) ticked up 1.7% to £13.06 as the UK’s largest luxury watch retailer upgraded its full year outlook amid continued buoyant demand for high-end timepieces in the UK and US and also announced its entry into the European market.
The seller of highly-prized brands including Rolex, TAG Heuer, Patek Philippe and Audemars Piguet now sees annual revenue and profit coming in towards the top end of the upgraded guidance given as recently as November. At the time, the company guided for revenue of between £1.15 billion to £1.2 billion.
TICKING OVER NICELY
Group sales were up 27.9% year-on-year to £348.1 million in the third quarter to 30 January 2022, encompassing the important Christmas period, and were 36.5% higher versus the comparable quarter in full year 2020.
Watches of Switzerland said demand for luxury watches continues to be ‘very strong’ in both the UK, where it highlighted a ‘thriving domestic clientele’, and in the US. With demand consistently exceeding supply, certain luxury watch brands have been able to raise prices, generating a tailwind for key partner Watches of Switzerland.
Luxury jewellery sales were up 88.4% in the quarter, reflecting strong market conditions, ranging improvements and growth from its Betteridge acquisition across the pond, not to mention the opening of the company’s first Bvlgari boutique, in Florida.
Watches of Switzerland’s ecommerce sales were 1.1% lower year-on-year, though this reflected a demanding lockdown-inflated comparative period when its UK stores were shut for nine out of the quarter’s thirteen weeks.
TIME FOR EUROPE
Following another strong trading period, Watches of Switzerland also unveiled plans for a European push, having acquired six ‘mono-brand’ boutiques in Sweden, Denmark and the Republic of Ireland, which it plans to open in the first half of fiscal 2023.
CEO Brian Duffy said he was ‘pleased to report continued strong momentum for our group following a successful Christmas trading period. We have delivered impressive growth in both luxury watches and luxury jewellery in both the UK and US markets demonstrating the value of our portfolio of world leading partner brands.
‘We have announced today our entry into the European market with mono-brand boutiques agreed in Sweden, Denmark and Republic of Ireland providing our group with further geographic diversification in line with our Long Range Plan.’
