If the market for luxury watches in Western economies is cooling, it has not hit the Watches of Switzerland Group yet.
In its latest quarterly update, for the six months ending October 30, the group says trading in the pre-Christmas era remains in line with expectations and its forecast for the full financial year is unchanged at £1.5 to £1.55 billion in sales.
“We believe that the strength of the luxury watch and jewellery categories, the unique supply/demand dynamics of luxury watches and client registration lists, our portfolio of leading brand partnerships, and the success and agility of our model will continue to support long term sustainable sales growth. We remain confident in our Long Range Plan objectives,” the financial report states.
Digging into the details, it is clear that the American market is driving growth for the group, and the strength of the dollar is boosting the UK-based business’s balance sheet.
Sales in the UK and Europe from May to October grew by 8% from £419 million to £454, while the United States contribution increased by 86% from £167 million to £311 million (60% at constant currency).
American sales were boosted by a full six months of reporting from Betteridge in Greenwich, Connecticut, Timeless Luxury in Plano, Texas, and one of Ben Bridge’s boutiques in Mall of America outside Minneapolis, which it acquired in November 2021.
Global group revenue grew by 31% from £586 million to £765 million (23% at constant currency).
Adjusted EBITDA increased by 26% to £104 million.
Despite the economic headwinds in Western markets, waiting lists are still growing.
“Our client registration lists continue to extend as we continue to attract new clients as well as retain a loyal base of existing ones,” says WoSG CEO Brian Duffy.
