Latest news with #RobertoCoinInc
Fashion Network
03-07-2025
- Business
- Fashion Network
Watches of Switzerland hits record revenue as UK recovers and US booms
The once-unstoppable Watches of Switzerland Group has been through a few challenging periods lately but on Thursday it reported 'record revenue' in its latest year driven by 'an improved H2 trading performance [with] continued excellent strategic and operational progress'. There were a mix of numbers in the report for the year to April with some positive and some negative, so let's look at those first. Group revenue increased by 7%, or 8% at constant currency (CCY), to reach £1.652 billion. That divided into a 2% rise in the UK and Europe to £866 million and a 14% rise (or 16% CCY) in the US to £786 million. The company had a number of exceptional costs to deal with but with those factored out, adjusted EBITDA was up 8% at £192 million and adjusted EBT increased 11% to £150, million. Meanwhile, operating profit fell 5% to £114 million and statutory profit before tax was down 18% at £76 million. As mentioned, the performance improved a lot in the second half with group revenue up 12% compared to 4% in H1 on a CCY basis. Luxury watches revenue increased 1% reported in the year and 2% CCY with demand for its key brands outstripping supply in both the US and UK markets. Its Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second largest luxury watch brand equivalent. Particularly impressive was the increase in luxury jewellery revenue which was up 106% (or 108% CCY), boosted by the acquisition of Roberto Coin Inc. Luxury branded jewellery delivered double-digit growth. Its pre-IFRS 16 guidance for FY26, which is a 53-week year, is based on the current US tariff rate of 10% maintained beyond the 90-day pause and currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. As it stands today, the 10% tariff on imported goods from Switzerland has led some of its brand partners to put through mid-single-digit price increases in the US, alongside reducing their authorised distribution network's margin percentage. It expects CCY revenue growth between 6% and 10%. But the outcome of US tariff developments remains uncertain so that guidance could always change. Tariffs uncertainty aside, CEO Brian Duffy was upbeat: 'I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.' He said it was a busy year for the group as it 'continued to deliver on our strategy at pace'. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, 'which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades'. Duffy added that the company is 'increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques'. He's also encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in its pre-owned business more generally. He said: 'As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.'
Fashion Network
03-07-2025
- Business
- Fashion Network
Watches of Switzerland hits record revenue as UK recovers and US booms
The once-unstoppable Watches of Switzerland Group has been through a few challenging periods lately but on Thursday it reported 'record revenue' in its latest year driven by 'an improved H2 trading performance [with] continued excellent strategic and operational progress'. There were a mix of numbers in the report for the year to April with some positive and some negative, so let's look at those first. Group revenue increased by 7%, or 8% at constant currency (CCY), to reach £1.652 billion. That divided into a 2% rise in the UK and Europe to £866 million and a 14% rise (or 16% CCY) in the US to £786 million. The company had a number of exceptional costs to deal with but with those factored out, adjusted EBITDA was up 8% at £192 million and adjusted EBT increased 11% to £150, million. Meanwhile, operating profit fell 5% to £114 million and statutory profit before tax was down 18% at £76 million. As mentioned, the performance improved a lot in the second half with group revenue up 12% compared to 4% in H1 on a CCY basis. Luxury watches revenue increased 1% reported in the year and 2% CCY with demand for its key brands outstripping supply in both the US and UK markets. Its Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second largest luxury watch brand equivalent. Particularly impressive was the increase in luxury jewellery revenue which was up 106% (or 108% CCY), boosted by the acquisition of Roberto Coin Inc. Luxury branded jewellery delivered double-digit growth. Its pre-IFRS 16 guidance for FY26, which is a 53-week year, is based on the current US tariff rate of 10% maintained beyond the 90-day pause and currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. As it stands today, the 10% tariff on imported goods from Switzerland has led some of its brand partners to put through mid-single-digit price increases in the US, alongside reducing their authorised distribution network's margin percentage. It expects CCY revenue growth between 6% and 10%. But the outcome of US tariff developments remains uncertain so that guidance could always change. Tariffs uncertainty aside, CEO Brian Duffy was upbeat: 'I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.' He said it was a busy year for the group as it 'continued to deliver on our strategy at pace'. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, 'which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades'. Duffy added that the company is 'increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques'. He's also encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in its pre-owned business more generally. He said: 'As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.'
Fashion Network
03-07-2025
- Business
- Fashion Network
Watches of Switzerland hits record revenue as UK recovers and US booms
The once-unstoppable Watches of Switzerland Group has been through a few challenging periods lately but on Thursday it reported 'record revenue' in its latest year driven by 'an improved H2 trading performance [with] continued excellent strategic and operational progress'. There were a mix of numbers in the report for the year to April with some positive and some negative, so let's look at those first. Group revenue increased by 7%, or 8% at constant currency (CCY), to reach £1.652 billion. That divided into a 2% rise in the UK and Europe to £866 million and a 14% rise (or 16% CCY) in the US to £786 million. The company had a number of exceptional costs to deal with but with those factored out, adjusted EBITDA was up 8% at £192 million and adjusted EBT increased 11% to £150, million. Meanwhile, operating profit fell 5% to £114 million and statutory profit before tax was down 18% at £76 million. As mentioned, the performance improved a lot in the second half with group revenue up 12% compared to 4% in H1 on a CCY basis. Luxury watches revenue increased 1% reported in the year and 2% CCY with demand for its key brands outstripping supply in both the US and UK markets. Its Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second largest luxury watch brand equivalent. Particularly impressive was the increase in luxury jewellery revenue which was up 106% (or 108% CCY), boosted by the acquisition of Roberto Coin Inc. Luxury branded jewellery delivered double-digit growth. Its pre-IFRS 16 guidance for FY26, which is a 53-week year, is based on the current US tariff rate of 10% maintained beyond the 90-day pause and currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. As it stands today, the 10% tariff on imported goods from Switzerland has led some of its brand partners to put through mid-single-digit price increases in the US, alongside reducing their authorised distribution network's margin percentage. It expects CCY revenue growth between 6% and 10%. But the outcome of US tariff developments remains uncertain so that guidance could always change. Tariffs uncertainty aside, CEO Brian Duffy was upbeat: 'I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.' He said it was a busy year for the group as it 'continued to deliver on our strategy at pace'. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, 'which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades'. Duffy added that the company is 'increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques'. He's also encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in its pre-owned business more generally. He said: 'As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.'
Fashion Network
15-05-2025
- Business
- Fashion Network
Watches of Switzerland hails growth comeback in latest year, US excels
Demand for its key luxury brands, particularly products on its Registration of Interest lists, 'remains strong, outstripping supply in both the US and UK markets'. The improved second-half performance saw group revenue rising 12% in H2 after a rise of only 4% in H1 at constant currency. Again, it saw a powerful performance in the US in the second half with an increase of 19% compared to 11% in the first half. As previously outlined, in Q1 it had increased showroom stock levels of key brands to enhance displays and client experience, particularly in the US. The company added that post-year-end, 'following a temporary period of consumer uncertainty in response to the initial tariff announcement, we have seen a return to normalised trading patterns in April. [But] we are cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns'. Back with the last financial year it also said it saw a 'positive improving trend in the UK, to +6% in H2' and 'we continue to be encouraged by the performance of our pre-owned businesses in the UK and US'. Meanwhile Roberto Coin Inc 'has performed strongly' and 'full-year adjusted EBIT [is] expected to be in line with market expectations'. CEO Brian Duffy said: 'In H2 FY25 we returned to growth in both the UK and US. In the US, we experienced strong momentum. In the UK, we were pleased to see the external environment stabilise in line with our expectations.' An H2 highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, 'in which we were able to bring our retailing excellence and operational strength to bear. Trading since launch has exceeded our expectations'. The company will launch its upgraded US Watches of Switzerland e-commerce website in the current Q1 of FY26 with further sites launching for Mayors and Betteridge during the year and 'this will provide a significantly enhanced client experience'. It said the 'US luxury jewellery market is the largest in the world and growing strongly. We will continue to build on the momentum we have seen in Roberto Coin Inc, with several exciting growth initiatives, including the launch of a major marketing campaign, secured locations for three monobrand boutiques and our e-commerce website upgrade'. Duffy added: 'As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category where demand for key brands continues to outstrip supply.'
Fashion Network
15-05-2025
- Business
- Fashion Network
Watches of Switzerland hails growth comeback in latest year, US excels
Watches of Switzerland Group delivered a 52-week trading update on Thursday and said its performance was 'in line with market expectations' plus it made 'strong strategic and operational progress with significant performance improvement in H2'. The company was formerly a perennial outperformer but had seen its seemingly unstoppable growth stalling in recent periods so any improvement is good news. Full-year group revenue was up 8% to £1,652 million, in constant currency and up 7% reported, in line with market expectations. UK & Europe revenue rose 2% but US revenue powered ahead by 16% in constant currency and 14% reported. Demand for its key luxury brands, particularly products on its Registration of Interest lists, 'remains strong, outstripping supply in both the US and UK markets'. The improved second-half performance saw group revenue rising 12% in H2 after a rise of only 4% in H1 at constant currency. Again, it saw a powerful performance in the US in the second half with an increase of 19% compared to 11% in the first half. As previously outlined, in Q1 it had increased showroom stock levels of key brands to enhance displays and client experience, particularly in the US. The company added that post-year-end, 'following a temporary period of consumer uncertainty in response to the initial tariff announcement, we have seen a return to normalised trading patterns in April. [But] we are cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns'. Back with the last financial year it also said it saw a 'positive improving trend in the UK, to +6% in H2' and 'we continue to be encouraged by the performance of our pre-owned businesses in the UK and US'. Meanwhile Roberto Coin Inc 'has performed strongly' and 'full-year adjusted EBIT [is] expected to be in line with market expectations'. CEO Brian Duffy said: 'In H2 FY25 we returned to growth in both the UK and US. In the US, we experienced strong momentum. In the UK, we were pleased to see the external environment stabilise in line with our expectations.' An H2 highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, 'in which we were able to bring our retailing excellence and operational strength to bear. Trading since launch has exceeded our expectations'. The company will launch its upgraded US Watches of Switzerland e-commerce website in the current Q1 of FY26 with further sites launching for Mayors and Betteridge during the year and 'this will provide a significantly enhanced client experience'. It said the 'US luxury jewellery market is the largest in the world and growing strongly. We will continue to build on the momentum we have seen in Roberto Coin Inc, with several exciting growth initiatives, including the launch of a major marketing campaign, secured locations for three monobrand boutiques and our e-commerce website upgrade'. Duffy added: 'As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category where demand for key brands continues to outstrip supply.'
