Watches of Switzerland Group has reported contrasting financial performances across different regions, with UK and Europe sales declining by 5% in the full year, while the US saw a notable 11% increase. The group’s pre-tax profit also saw a significant drop of 40% to £90 million, with adjusted EBITDA profits down by 11% to £179 million.
CEO Brian Duffy attributed the challenges in the UK and Europe to substantial price hikes amidst reduced consumer confidence, affecting discretionary spending. Despite these pressures, Duffy expressed optimism for the current financial year, noting signs of stabilization in the UK market.
The absence of VAT-free shopping due to the tourist tax further impacted UK performance, though domestic clientele contributed positively. Duffy acknowledged the team’s strong performance in a challenging market, emphasizing the group’s solidification as a leading global luxury watch and jewellery retailer, with increased market share in both the UK and US.
Looking ahead, Watches of Switzerland plans to expand its footprint with new store openings, including a flagship Rolex boutique on Old Bond Street in London and an Audemars Piguet Townhouse in Manchester. Duffy highlighted the growing significance of pre-owned watches, citing a doubling in sales year-on-year, and identified this segment as a “significant opportunity” for future growth.
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