Sales lift at Watches of Switzerland as its shrugs off Omicron impact

Shares in the retailer moved higher after it said it is set to meet the top end of its profits guidance.

Henry Saker-Clark
Thursday 10 February 2022 13:10
A Watches of Switzerland store on Oxford Street, central London (Yui Mok/PA)
A Watches of Switzerland store on Oxford Street, central London (Yui Mok/PA)

Watches of Switzerland has posted a jump in sales over the latest quarter after hailing strong demand in the UK and US.

Shares in the retailer moved higher after it told shareholders it is set to meet the top end of its profits guidance following the resilient performance.

Brian Duffy, chief executive of the business, told the PA news agency that the spread of the Omicron variant “barely” had an impact on trading as he cheered positive Christmas sales.

Watches of Switzerland reported that group revenues increased by 27.9% to £348.1 million in the three months to the end of January, compared with the same period last year.

The retailer said demand for luxury watches in the UK was “very strong” over the period, with luxury watch sales increasing by 15.2% in the region over the quarter.

We are glad demand is so high. We don't see it as an issue really

Brian Duffy, Watches of Switzerland CEO

Sales of other luxury jewellery increased by 88.4% for the quarter as it hailed the benefit of its acquisition of Betteridge boutiques in the US last year.

Total US revenues increased by 44.6% to £124.6 million over the quarter.

Mr Duffy also said that demand for some brands of watches was noticeably ahead of supply but said he has no concerns over the stock of products it is able to sell in its stores and online.

“We are glad demand is so high. We don’t see it as an issue really,” he told PA. “We have a really good relationship with the suppliers and where there is most demand have been able to set up waiting lists for customers.”

The company said it now expects both sales and profits for the full financial year to be at the higher end of forecasts it upgraded in November.

Mr Duffy added: “Strong trading to date, revised pricing by certain brands and visibility of supply for calendar 2022 all support our expectation to perform towards the top end of our full-year guidance.

“Demand in our category continues to outstrip supply and we remain confident in the future of our business and achieving the goals laid out in our long-range plan.”

Shares in the firm moved 1.7% higher in early trading.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in