Watches of Switzerland clocks £905m revenue as customers ‘disposable wealth’ swells
Luxury watch group Watches of Switzerland posted a £905.1m revenue this morning, as the pandemic allowed the disposable income of its wealthy customers to swell.
Total revenue grew 13.3 per cent in the 53 weeks to 2 May. Revenue in the UK alone lifted 3.6 per cent to £606.5m, making the UK the watchmakers key market.
The group also raked in a statutory profit before tax of £63.7m, up from £1.5m last year.
“Trading has remained strong in both the UK and the US since the year-end. Our customer has accumulated disposable wealth and our category is an attractive option,” CEO Brian Duffy said.
Shares slumped 0.3 per cent in its afternoon trading, taking its share price to 852p per share.
Luxury watch sales rose 16 per cent, making up 87.1 per cent of the group’s revenue.
“The luxury watch market remains predominantly supply-driven with demand exceeding product availability for key brands and models,” Duffy continued
“In the UK, where our stores were closed for approximately half the year, we further enhanced our market-leading position.”
The group shaved its net debt from £129.7m last year to £43.9m this year. Watches of Switzerland also repaid the money it received for furlough from the UK government under the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The watchmaker boss added that “sustained capital investment will continue to support our growth plans in the UK.”
Its sales were boosted by its online sales, the group said in a statement, which was more prominent in the UK than in the US – as ecommerce sales doubled to 120.5 per cent.