Improved trading performance for Watches of Switzerland Group – East Midlands Business Link

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Leicester-based Watches of Switzerland Group has reported an improved trading performance in its second quarter, with revenue of £379 million.

This is up from £374 million in the same period last year and comes as the firm says demand for luxury watches remains robust and continues to exceed supply.

It puts half year revenue, for the 26 weeks to 29 October 2023, at £761 million, decreasing slightly from £765 million last year.

Brian Duffy, Chief Executive Officer, said: “I am pleased to report an improved Q2 trading performance, notwithstanding the difficult consumer environment. Our proven business model, the strength of our brand partnerships, international scale, bold marketing campaigns and dedication to exceptional client service, continues to drive the business forward. 

“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.

“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. The UK business exited the quarter strongly, returning to year-on-year growth in October. 

“We have been focused on developing our network of luxury showrooms across the UK, US and Europe in the period, including the continued roll-out of the Goldsmiths Luxury showroom format, the Mappin & Webb contemporary concept, the refurbishment of the Rolex boutique in Millenia, Orlando and new mono-brand boutiques. 

“I am delighted to announce that, in October 2023, we agreed to acquire 19 luxury watch showrooms, including five mono-brand boutiques from Ernest Jones in the UK. I would like to welcome our new colleagues in the luxury showrooms we have acquired from Ernest Jones.

“We believe these are great showrooms and highly complementary to our portfolio. During the balance of the fiscal year, we will be working on systems, merchandising, training and marketing in order to have the full beneficial impact from this acquisition in FY25. 

“In the second half, our major showroom upgrades in the UK will reopen pre-Christmas along with the reopening of our US Rolex boutique at Millenia, Orlando. That, combined with our sequential sales improvement over the quarter means we reiterate our FY24 guidance.

“Our business is well planned and our teams full of enthusiasm for the upcoming holiday season.”

The news comes as Watches of Switzerland Group reveals its Long Range Plan, aiming to more than double sales and profits by FY28, to surpass the milestone of £3bn in revenue.

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