Watches of Switzerland has reported a notable uptick in sales during its latest full-year trading update, showcasing an impressive 8% year-on-year increase to £1.7 billion for the 52 weeks ending April 27. This aligns well with what market analysts were anticipating. Within this period, revenue from both the UK and Europe saw a modest 2% rise, reflecting a more stable performance amidst fluctuating economic conditions.
One of the standout points from the update was the retailer’s strong demand for luxury watch brands, which continues to significantly outstrip supply, especially in major markets like the UK and the US. This trend shows not only the solid foothold that luxury watches have in the current market but also the brand loyalty that consumers exhibit. In fact, the company reported an admirable 12% growth in group sales in the second half of the year, compared to just 4% in the first half, indicating a recovery or ramp-up in consumer spending as the economic climate begins to stabilize.
Looking ahead, Watches of Switzerland anticipates that its adjusted EBIT for the full year will meet market expectations, with the results for FY25 set to be released on July 3. As they progress into FY26, the company appears focused on executing its strategic goals. The leadership team, including CEO Brian Duffy, expressed optimism about the future, citing a “strong pipeline of high-quality projects” slated to open across both the UK and the US.
Duffy emphasized confidence in their business model and the resilience of the luxury watch category, where the demand for their key brands remains robust despite external economic pressures. However, he also acknowledged concerns surrounding broader economic factors, such as potential changes to tariffs in the US, which could impact their operations.
In a recent development, the retailer disclosed plans to close 16 of its showrooms in the UK, resulting in around 40 potential job losses. This decision reflects the ever-evolving retail landscape and the company’s need to adapt to dynamic market conditions. However, Watches of Switzerland is making efforts to support affected employees, with plans to redeploy staff wherever possible. They remain dedicated to prioritizing the well-being of their team members during these transitions.
As Watches of Switzerland continues navigating through various challenges and opportunities, their commitment to both their customers and employees stands strong, underscoring the trust and reliability that define their brand. This adaptability will likely be a pivotal factor as they forge ahead in the luxury watch market.
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