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The boss of Watches of Switzerland has warned that the company’s jewellery division is being hit hard by fewer couples getting engaged, writes Emily Hawkins.
Chief executive Brian Duffy said that Covid lockdowns stopped people dating and going out, adding that the luxury firm, which sells engagement gems through High Street chain Goldsmiths, is still feeling the effects as sales of expensive rings slump.
In the US and the UK, the bridal jewellery market has been “impacted by the knock-on effects of Covid”, Duffy explained.
“Romance didn’t blossom in lockdown and normally it is two to three years later that romance becomes engagement. There are less engagements but I think it will come back.” As a result jewellery sales were down 15pc in the three months to July 30 compared to the same period last year.
Sales had also been dampened by consumer worries about rising prices. “Sentiment has been impacted by interest rates and the cost of living,” Duffy added.
But Watches of Switzerland is best known for selling Cartier, Rolex, TAG Heuer and Omega timepieces, which make up the majority of the company’s sales. Demand for luxury timepieces -some costing tens of thousands of pounds – continues to hold up, with growing waiting lists for watches. Duffy said: “Watches are a status symbol that last for ever, they become family heirlooms and are never wasted at any point.
“It’s a rational indulgence that you can make sense of spending your hard-earned money, some other luxury categories may appear more frivolous.”
Younger shoppers and more women have been buying watches over the past five years, he added.
Overall, the group clocked sales of £382m, down 2pc from £391m in the same quarter of 2023. Sales of luxury watches – which made up 88pc of revenue – were down 2pc to £336m.
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