Watches of Switzerland Group PLC disclosed that its revenue remained flat for the full year, with robust performance in the US offset by a sluggish UK market. According to the UK-based luxury watch retailer, group sales amounted to GBP 1.54 billion ($1.95 billion) for the 12-month period ending April 28, as reported last week.
The company clarified that revenue in the UK and Europe experienced a 5% decline to GBP 846 million ($1.07 billion), attributing the downturn to macroeconomic challenges in the UK and a scarcity of supply for key luxury watch brands. Conversely, sales in the US surged by 6% to GBP 692 million ($878.7 million), driven by sustained demand across all regions and the inauguration of new stores.
Within the product segments, luxury watch sales saw a modest uptick of 1% to GBP 1.35 billion ($1.71 billion), while revenue from jewelry witnessed a notable decline of 14% to GBP 102 million ($129.5 million).
The fourth quarter of the fiscal year saw a 3% increase in group sales to GBP 380 million ($482.6 million), fueled by heightened demand in the US and a notable performance in the Rolex certified pre-owned segment. Watches of Switzerland highlighted that revenue from pre-owned and vintage pieces doubled compared to the corresponding period of the previous year, while jewelry sales exhibited a “significant improvement” during the quarter.
In detail, revenue in the UK and Europe dipped by 4% to GBP 190 million ($241.2 million), while US sales surged by 10% to GBP 190 million.
Looking ahead to fiscal 2025, Watches of Switzerland anticipates revenue to range between GBP 1.67 billion and GBP 1.73 billion ($2.12 billion and $2.2 billion), marking a growth of 9% to 12% at constant currency rates. The company underscored that the projected increase reflects the anticipated enhancement in supply from key watch brands, alongside planned store openings and closures during the period. Furthermore, the guidance encompasses the anticipated revenue realization from the recent acquisitions of Ernest Jones and Roberto Coin.
CEO Brian Duffy expressed satisfaction with the strong finish to the year, noting that fourth-quarter sales aligned with expectations and surpassed consensus estimates. He conveyed a sense of cautious optimism as the company enters fiscal 2025, citing a robust program of showroom developments across both sides of the Atlantic. Duffy emphasized the enduring strength of the company’s operational categories, coupled with its superior business model and retail expertise, which he believes continue to differentiate Watches of Switzerland in the market.
The company disclosed that it will unveil its full results for the fiscal year 2024 on June 27.
