D
emand for luxurious timepieces “continues to outpace supply”, retailer Watches of Switzerland mentioned, as years-long ready lists for its most in-demand timepieces bought even longer, regardless of it elevating costs.
Higher costs, alongside a continued rise in gross sales volumes, helped the enterprise report income of £1.5 billion and revenue of £155 million for the 12 months.
CEO Brian Duffy advised the Standard that watch makers had averted mountain climbing costs too drastically, citing lengthening ready lists for ‘grail’ watches just like the Rolex Submariner..
“The brands have been very responsible,” he mentioned.
But the retailer can also be working not on time on opening a brand new Rolex store on Old Bond Street. Duffy mentioned the design of the store, which Rolex and Watches of Switzerland are working collectively on, “is taking a bit longer than we had hoped”.
Luxury watch gross sales grew by 28% year-on-year, and luxurious jewelry gross sales jumped by a tenth.
“Consumer appetite for products remained strong and, in many instances, well above the levels that the group is able to supply”, the agency mentioned.
Luxury watch demand stays sturdy and continues to outpace provide, with our consumer registration lists extending and common promoting costs rising
The group’s statutory pre-tax revenue jumped by practically 1 / 4, from £126 million to £155 million within the newest 12 months.
The report 12 months for revenues and profitability got here regardless of a more difficult buying and selling atmosphere through the second half of the monetary 12 months, Watches of Switzerland mentioned.
It was additionally pushed by a surge in revenues within the US of greater than a 3rd.
In the UK, vacationer gross sales stay “very low” and demand was pushed by home prospects, however extra consumers returned to airports through the 12 months, it revealed.
The retailer, which additionally sells manufacturers together with Cartier, Tudor, and Patek Philippe, has been shaking up its chain of outlets across the nation.
It opened 5 showrooms at Battersea Power Station in London and 10 single-brand boutiques throughout the UK, however closed six showrooms elsewhere.
It can also be on account of open a brand new showroom in St Anne’s in Manchester and a flagship retailer Old Bond Street in London subsequent 12 months.
The agency expects to report slower income development of between 8% and 11% subsequent 12 months.
Brian Duffy, Watches of Switzerland’s chief government, mentioned: “Luxury watch demand remains strong and continues to outpace supply, with our client registration lists extending and average selling prices growing.”
Danni Hewson, the top of economic evaluation at AJ Bell , mentioned: “The fact it has achieved stellar growth in a cost-of-living crisis shows that not everyone is short of money.
“The market has previously worried that the luxury goods market might not be as resilient as previously thought.
“Despite the uncertain economic backdrop, the fact Watches of Switzerland hasn’t downgraded its guidance has been taken as a massive positive in the eyes of investors.”
