The Watches of Switzerland Group has released its latest sales results, showcasing impressive growth in profit for the first half of fiscal year 2022. The luxury watches and jewelry retail group experienced a substantial increase in group revenue, reaching £586.2 million, a 44.6% rise compared to the same period last year. This growth becomes even more significant when compared to the first half of fiscal year 2020, with a 40.8% increase in constant currency.
The core UK operations of Watches of Switzerland performed robustly, generating £418.6 million in revenue, a 42.3% increase compared to the first half of fiscal year 2021. This impressive growth is a 31.8% surge when compared to the first half of fiscal year 2020 when tourism and airport sales accounted for a significant portion of group sales. However, due to reduced travel caused by the pandemic, tourist and airport sales were minimal in the first half of fiscal year 2022.
The US market also displayed outstanding performance for Watches of Switzerland, with revenue increasing by 50.2% in constant currency compared to the first half of fiscal year 2021 and by 66.7% compared to the first half of fiscal year 2020, reaching £167.6 million. Furthermore, the group’s e-commerce sales grew by 28.7% compared to the previous year.
Adjusted EBITDA saw a significant leap of 58.8% to £82.8 million, with the adjusted EBITDA margin increasing from 12.6% to 14.1%. The company’s statutory operating profit also experienced a notable increase of 58.6% to £72.3 million.
Watches of Switzerland emphasized the continuous strong demand for luxury watches and jewelry, attributing growth to increased volumes of non-supply constrained brands. Additionally, the average selling price of each brand exhibited a positive growth trend.
Looking ahead, Watches of Switzerland expressed optimism for the future, stating that the third quarter commenced with continued strong momentum. The company’s CEO, Brian Duffy, attributed their success to a robust multichannel business model, dedicated employees, and the attractive dynamics of the luxury watches and jewelry category, where demand continues to surpass supply.
The company introduced various initiatives and enhancements during challenging trading circumstances last year, which have now become permanent features of the business. These measures have enabled Watches of Switzerland to maintain high levels of customer engagement, provide an exceptional experience, and deliver attractive returns.
The impressive sales performance of Watches of Switzerland demonstrates its resilience and adaptability to evolving market conditions. With strong demand for luxury watches and jewelry persisting, the company’s future prospects remain promising, both in the UK and US markets.
Useful links:
1. Retail Gazette: Watches of Switzerland sees sales surge in FY22 H1
2. WatchPro: Watches of Switzerland grows sales by 42.3% in first half of FY22
