Watches of Switzerland (WoS) has swiftly rebounded in Q2, following a challenging Q1, and is unveiling an ambitious ‘Long Range Plan’ to more than double sales and profits from fiscal 2024 to fiscal 2028.
CEO Brian Duffy is optimistic about the plan, stating, «This outlines our strategy for the next five years, capitalizing on our market leadership and unique growth opportunities as the world’s largest luxury watch retailer.» The Group’s strength, surpassing the 2021 plan, includes a diverse pipeline of projects, notably the strongest-ever commitment to Rolex projects.
The ambitious goal is to surpass £3 billion in revenue, emphasizing operational leverage, new showroom projects, and M&A activity. The company sees substantial growth potential in the pre-owned market, expecting robust percentage growth in both the US and UK. Additionally, it aims to apply its market-leading luxury watch model and expertise to elevate luxury brands in the growing luxury branded jewelry market.
This positive announcement follows an improved Q2/H1 trading performance, achieved within a challenging consumer environment. While UK sales faced challenges in H1, the US market exhibited strength, with a notable 11% increase in sales at constant currency. The positive response to the Rolex Certified Pre-Owned program and the UK acquisition of luxury watch showrooms further contributed to the overall positive performance.
In Q2, group revenue rose by 5% at constant currency to £379 million, reflecting robust demand for luxury watches and increasing average selling prices. The pre-owned business experienced remarkable growth, with sales increasing by 88% in constant currency. The US market saw a revenue rise of 11% at constant currency, reaching £165 million.
For H1, group revenue exceeded expectations, coming in 2% ahead at £761 million. Luxury watch sales rose by 3%, representing 88% of revenues. Despite a 4% fall in group e-commerce sales, impacted by strong comparatives in the prior year and a higher proportion of jewelry sales, Watches of Switzerland remains optimistic about its future. H1 FY24 Adjusted EBIT is expected to range between £70 million and £72 million, reflecting strategic adjustments in response to market dynamics.
Watches of Switzerland is poised for growth, capitalizing on its market leadership and seizing opportunities in the evolving luxury retail landscape. Explore the luxury watch experience with WoS, your destination for exceptional timepieces and curated jewelry collections.