Watches of Switzerland Group delivered a 52-week trading update on Thursday and said its performance was “in line with market expectations” plus it made “strong strategic and operational progress with significant performance improvement in H2”.
The company was formerly a perennial outperformer but had seen its seemingly unstoppable growth stalling in recent periods so any improvement is good news.
Full-year group revenue was up 8% to £1,652 million, in constant currency and up 7% reported, in line with market expectations. UK & Europe revenue rose 2% but US revenue powered ahead by 16% in constant currency and 14% reported.
Demand for its key luxury brands, particularly products on its Registration of Interest lists, “remains strong, outstripping supply in both the US and UK markets”.
The improved second-half performance saw group revenue rising 12% in H2 after a rise of only 4% in H1 at constant currency. Again, it saw a powerful performance in the US in the second half with an increase of 19% compared to 11% in the first half.
As previously outlined, in Q1 it had increased showroom stock levels of key brands to enhance displays and client experience, particularly in the US.
The company added that post-year-end, “following a temporary period of consumer uncertainty in response to the initial tariff announcement, we have seen a return to normalised trading patterns in April. [But] we are cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns”.
Back with the last financial year it also said it saw a “positive improving trend in the UK, to +6% in H2” and “we continue to be encouraged by the performance of our pre-owned businesses in the UK and US”. Meanwhile Roberto Coin Inc “has performed strongly” and “full-year adjusted EBIT [is] expected to be in line with market expectations”.
CEO Brian Duffy said: “In H2 FY25 we returned to growth in both the UK and US. In the US, we experienced strong momentum. In the UK, we were pleased to see the external environment stabilise in line with our expectations.”
An H2 highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, “in which we were able to bring our retailing excellence and operational strength to bear. Trading since launch has exceeded our expectations”.
The company will launch its upgraded US Watches of Switzerland e-commerce website in the current Q1 of FY26 with further sites launching for Mayors and Betteridge during the year and “this will provide a significantly enhanced client experience”.
It said the “US luxury jewellery market is the largest in the world and growing strongly. We will continue to build on the momentum we have seen in Roberto Coin Inc, with several exciting growth initiatives, including the launch of a major marketing campaign, secured locations for three monobrand boutiques and our e-commerce website upgrade”.
Duffy added: “As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category where demand for key brands continues to outstrip supply.”
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