Watches of Switzerland Group has continued to experience significant success as the demand for watches continues to rise. The company has reported impressive trading results for the third quarter and the first nine months of the year, ending in January. In Q3, the group’s revenue increased by 17% on a reported basis and 12% on a currency-neutral basis, reaching an impressive total of £407 million. Over the course of the nine months, revenue rose to £1.17 billion, representing a 25% increase on a reported basis and a 19% increase on a currency-neutral basis.
The strong performance in this quarter was primarily driven by luxury watches, which saw a remarkable 22% rise and accounted for 84% of the total revenue, reaching £340 million. This is an increase from the previous year’s 80%. The growth can be attributed to both an increase in the average selling price and higher volumes.
Luxury jewellery sales also saw a modest increase of 2% at reported rates, reaching £41 million. This is a reflection of the company’s focus on full-price sales and an increase in the average selling price during the quarter. The group’s e-commerce revenue also experienced growth, increasing by 5% at reported rates. This can be attributed to continued investment in the omnichannel strategy, improved product range, increased availability for next-day delivery, and expansion of the virtual boutique team, offering expert client services.
It is worth noting that the pre-owned market performed exceptionally well, with strong revenue growth in both the UK and the US. In the US, revenue rose by an impressive 36% at reported rates and 22% on a currency-neutral basis, reaching £169 million. Excluding acquisitions, currency-neutral revenue growth was 17%. In the UK and Europe, revenue growth reached 7%, reaching £238 million. The growth in the UK was primarily driven by domestic shoppers, as tourist spending was limited.
Watches of Switzerland Group has been actively opening and refurbishing a large number of stores in the UK and expanding into Europe. The company recently opened its fifth monobrand boutique with Omega in Stockholm, and it plans to open its first monobrand boutique in Dublin with TAG Heuer this month. CEO Brian Duffy expressed his satisfaction with the strong performance in Q3, highlighting the company’s investment in leading showroom design, strong brand partnerships, omnichannel excellence, and exceptional client service. He also mentioned that demand for their watches remains strong and continues to surpass supply, with growing client registration lists. Looking ahead, the company remains confident that their strategic initiatives will enhance their leadership position and enable them to achieve their Long Range Plan objectives.
Useful links:
1. [Watches of Switzerland Group – Official Website](https://www.watches-of-switzerland.co.uk/)
2. [TAG Heuer – Official Website](https://www.tagheuer.com/)
