The Watches of Switzerland group reported a 4% revenue increase to £785m for the first half of the year, primarily driven by US demand.
- Despite the revenue rise, the company’s adjusted EBIT fell 9% due to acquisition-related expenses.
- While the US market saw a 24% growth, UK and European markets experienced a slight dip in revenue.
- The group’s acquisition of Roberto Coin significantly influenced the luxury jewellery segment, boosting its revenue by £51m.
- The group is optimistic about its full-year forecast, anticipating ongoing growth with showroom expansions and digital enhancements.
The Watches of Switzerland group has reported a substantial 4% year-on-year rise in revenue, amounting to £785 million for the first half. This growth is strongly attributed to the robust demand in the US market, which alone witnessed a remarkable 24% revenue increase.
Despite this positive revenue trend, the group’s adjusted earnings before interest and tax (EBIT) declined by 9%, reaching £66 million. This drop was primarily driven by acquisition-related costs and efforts directed towards integration.
While the US demonstrated strong market performance, the UK and European regions saw a minor decline of 1% in revenue, totalling £430 million. This variance highlights the contrasting market dynamics between these regions.
A significant highlight was the group’s luxury jewellery segment, bolstered by the acquisition of the Roberto Coin brand. This addition contributed £51 million, leading to a 104% surge in the segment’s revenue, although without Roberto Coin, the luxury jewellery revenue would have seen a 6% decline with some recovery signs in the UK.
CEO Brian Duffy expressed optimism about the future, noting the encouraging start to Q3 trading alongside plans for new showroom openings in key locations including London, Manchester, Texas, and Florida. The acquisition of Hodinkee is expected to strengthen the group’s online foothold, supporting their confidence in achieving a full-year revenue forecast of £1.67 to £1.73 billion, reflecting potential growth of up to 12%.
Watches of Switzerland remains optimistic for future growth, focusing on strategic expansions and market responsiveness.
