Although Watches of Switzerland Group’s half-year results are not expected until December, the company provided a trading update on Tuesday covering the first 18 weeks of its financial year. The update indicates a rebound for the retailer, which had previously experienced a downturn.
The company reported that its trading performance aligns with expectations and it remains on track to meet its fiscal year 2025 (FY25) guidance. Progress is being made in accordance with its Long Range Plan.
Demand for key luxury brands, especially those on Registration of Interest lists, continues to exceed supply in both the UK and US markets, with ongoing additions and conversions. The UK market, in particular, is stabilizing for luxury watches and jewellery after facing challenging macroeconomic conditions in the previous financial year.
To enhance customer experience and showroom displays, Watches of Switzerland is increasing stock levels in the US, with growth anticipated to be more pronounced in the second half of the year.
The integration of Roberto Coin Inc, acquired in May, is progressing as planned. The company has received positive feedback from retail partners and encouraging sell-out data. Plans for growth in the US market include negotiating new monobrand boutiques and concession models with department stores.
Luxury branded jewellery has shown strong global performance, with the exclusive launches of David Yurman and Repossi in the UK. The company is also advancing its Manchester luxury jewellery boutique, slated to open in April 2025, which will be the exclusive retail partner for several luxury brands outside of London.
In showroom developments, the group has opened a new Mappin & Webb location in Edinburgh and a 2,000 sq ft Patek Philippe room in Betteridge, Greenwich, Connecticut. Key upcoming projects for the second half of the year include a new flagship Rolex store on Old Bond Street, London, scheduled for March; the Audemars Piguet Townhouse in Manchester, set for Q4 FY25; the conversion of Mayors Lenox in Atlanta to a Rolex store in Q3; and the expansion of Watches of Switzerland Plano, Texas to include a new Rolex agency, also in Q3.
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