Latest news with #WatchesofSwitzerlandGroup
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.'
Daily Mail
03-07-2025
- Business
- Daily Mail
Watches of Switzerland sales jump but shares slump amid margin pressure
Watches of Switzerland Group's annual revenues recovered to a record high, after strong trading over the second half of the year. But shares fell sharply on Thursday as Watches of Switzerland warned the imposition of US trade tariffs would put further pressure on margins in the year ahead. The luxury retailer said sales increased by 8 per cent at constant currency rates to £1.65billion in the year ending 27 April. Revenue only expanded by 4 per cent in the first half, due to its US business bumping up showroom stock levels of prominent brands before climbing by 12 per cent over the following six months. Luxury jewellery purchases more than doubled from £102million to £211million thanks to the takeover of Italian firm Roberto Coin's US associate company. By comparison, the group's luxury watch sales and combined revenues across the UK and Europe rose by only 2 per cent to £1.35billion and £866million, respectively. Watches of Switzerland's trade in Britain continued to be affected by subdued tourist demand stemming from the removal of VAT-free shopping four years ago, which contributed to its online turnover falling by 5 per cent. Yet the retailer's UK sales still returned to growth as the luxury watch and jewellery market stabilised following considerable pandemic-induced volatility. Its adjusted earnings before interest and tax also grew by 12 per cent to £150million, surpassing analyst expectations of £148.8million. However, pre-tax profits slumped by 18 per cent to £76million owing to product mix and greater promotional activity. Watches of Switzerland's overhead costs also jumped by a quarter, largely due to the Roberto Coin takeover, as well as IT investment, salary hikes, and the opening of a new support centre in Florida. The London-based company expects its profit margins to decline this year in the wake of US President Donald Trump's 10 per cent baseline tariff on imported goods. Trump briefly slapped a 31 per cent 'reciprocal' levy on Swiss-made products in April before suspending the tax for 90 days. Some of Watches of Switzerland's brand partners have responded to the tariffs by hiking prices in the US by a mid-single-digit percentage, thereby eroding margins. It told investors: 'The outcome of US tariff developments remains uncertain. We are in regular dialogue with our brand partners, but it is too early to comment on the potential sector impact of further changes. 'We will provide a further update as to the potential impact on FY26 guidance once the situation becomes clearer.' The Swiss Government has until 9 July to agree a trade deal with the US before the higher tariffs come back. Watches of Switzerland Group shares were 7.1 per cent down at 391.6p on Thursday morning, taking their losses to around 28 per cent since the year started. Equity research analyst at Shore Capital David Hughes said: 'The business has done an admirable job in driving margin recovery alongside revenue growth in FY25A. 'But in our view further margin recovery is needed before the market offers a more generous rating on the stock.'
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.'
Edinburgh Live
09-06-2025
- Business
- Edinburgh Live
Luxury Edinburgh watch boutique opens at St James Quarter with pool table and bar
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info A luxury Swiss watchmaker has opened within Edinburgh's St James Quarter with a pool table and stocked bar. The new additions to Breitling, which has seen the unit more the double in size, have been put in place to offer a "enhanced client experience" and the "perfect environment" to discover its wears. The expanded boutique within the huge shopping, dining and leisure centre, recently reopened following a refurbishment and in partnership with Watches of Switzerland Group. The unique store features an industrial loft design, exposed brickwork and steel accents. It also includes a pool table and fully stocked bar for customers to discover the full collection. Gavin Murphy, Breitling's Managing Director, commented: "The expansion of the Edinburgh boutique marks an important step for Breitling in Scotland, a city that has long been significant to the brand. (Image: Breitling) "The new boutique has doubled in size, allowing us to bring more theatre. With the Breitling pool table and a bar that truly embodies the spirit of Breitling, creating a social, informal and inclusive experience to our clients" Customers can find the brand's full collection in-store, from UK exclusives and limited editions to iconic timepieces such as the Navitimer, Chronomat, Superocean, and Premier. Craig Bolton, President of the Watches of Switzerland Group UK & Europe, added: "The Watches of Switzerland Group has a rich history of long-standing, prestigious brand partnerships, and we are delighted to be partnering with Breitling in opening the expanded boutique in St. James Quarter – the leading premium retail destination in Scotland."
