The first time Watches of Switzerland Group CEO Brian Duffy held a conference call to discuss the first draft of its 2023 financial year results, the mood was somewhat downbeat.
The hottest year for luxury watches on record had generated group sales of £1.54 billion for the year ending April 2023, up 19% at constant currency, and 25% at reported rates thanks to the strength of the dollar when its US results are reported into UK accounts.
Luxury watch revenue for the group was up 28%, thanks to greater volume of sales and higher prices.
But WoSG’s share price dropped by as much as 13% on the day those results because, in a conference call with analysts on May 17, Mr Duffy said he expected a slight drop in sales for the first quarter from May to July but a stronger second half as macro economic conditions improve.
The accounts for that financial year were officially audited and confirmed today, along with a far more upbeat assessment of the coming year or two.
An annual growth forecast of 8-10% for the 2024 financial year is unchanged, with revenue predicted at £1.65 to £1.70 billion, but it was the tone of comments from Mr Duffy that encouraged investors to push the group’s share price up 14% in this morning’s trading.
A positive set of financial results from Swatch Group today may also have helped to improve investor sentiment in the luxury watch and jewellery sector.
“Luxury watch demand remains strong and continues to outpace supply, with our client registration lists extending and average selling prices growing,” Mr Duffy says.
He also suggests there will be further positive news at the next financial report event in October.
“We enter FY24 significantly ahead of where we expected to be when we presented our Long Range Plan in 2021, and we look forward to presenting our Long Range Plan update, which will outline our growth ambitions beyond FY26 to FY28, in Autumn this year,” he teases.
Watches of Switzerland’s share price has been sliding from a peak of £14.70 in December of 2021 to £6.10 last week, but has risen today (July 13) to £7.29.
