Recession? Try a Rolex: Watches of Switzerland revenue up again
Luxury watch retailer Watches of Switzerland’s revenue rose 22 per cent in the final quarter but the luxury watchmaker warned that there would be a slight sales dip in the first quarter of the next financial year.
In the quarter to April, revenue rose 22 per cent to £371m on a reported basis. At constant currency, revenue still rose 18 per cent. This was primarily driven by a 27 per cent increase in revenue from the firm’s US division.
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Luxury watches continued to perform well in the quarter, seeing a 28 per cent rise in revenue. Jewelry however performed less well with revenue slipping 17 per cent on last year.
This brought its full year revenue to £1.5bn, 25 per cent higher than the year before on a reported basis and 19 per cent higher on a constant currency basis. The firm’s adjusted EBIT is expected to be between £177m and £181m for the full year, up from £144m the year before.
On the back of strong performances, Watches of Switzerland noted that it is entering the 2024 financial year “significantly ahead of schedule”.
However, Watches of Switzerland warned that “the more challenging trading environment” would continue into the first half of next year. Across the 2024 financial year it expects revenue to grow between eight and eleven per cent compared to 2023. It will announce its full year results on 13 July.
Brian Duffy, chief executive, said: “FY23 was another record year of revenue and profitability, with revenue growth of 25 per cent at reported rates and continued EBIT margin expansion.
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“Although, as expected, the second half of FY23 saw a more challenging trading environment, demand remains strong and continues to exceed supply, with client registration lists continuing to grow,” he continued.