Turnover for The Swatch Group (UK) Limited rose by over 23% to £81.32 million last year as the fall in the value of the pound caused a spike in sales.
The currency devaluation following Britain’s decision to leave the EU in June last year created a price advantage of up to 30% for UK retailers over rivals in Europe.
Rolex, Patek Philippe and LVMH watch brands increased prices last summer in an effort to narrow this price differential, but Swatch Group did not. This appears to have encouraged watch shoppers from around the world to buy their timepieces in this country.
The 2016 turnover for The Swatch Group UK includes sales for The Swatch Group UK Les Boutiques Ltd for the first time. This subsidiary reported sales of £3.5 million in 2015, but its 2016 sales are included in the total of £81.32m.
Operating profit for Swatch Group’s UK subsidiary fell from £7.63 million in 2015 to £6.25 million in 2016, according to accounts filed at Companies House.
The Swatch Group is the second of the big three luxury watch groups to file 2016 accounts at Companies House. LVMH Watch & Jewellery (UK) Limited, which oversees distribution and owned boutiques for TAG Heuer, Hublot, Zenith and Bulgari in the UK, has recorded a 30% rise in sales for its 2016 financial year that ended December 31 from £71.6 million in 2015 to £93 million in 2016.
Operating profit rocketed 62% from £5.9 million to £9.5 million over the same period for LVMH.
Patek Philippe outsold both LVMH and Swatch Group in the UK last year with turnover of £142.3 million from a single brand.