Watches of Switzerland reports 112% increase in profit before tax

Watches of Switzerland has reported a 112% increase in adjusted profit before tax since May 2019.

The high-end retailer revealed that group revenues increased by 17.3% to £428.7m with a 10.3% increase in like for like sales growth driven by higher luxury watch sales.

In the six months to 27 October, Watches of Switzerland reported net cash from operating activities of £49.6m up £12.2m.

Meanwhile, the company revealed it had made £9m loss before tax, which attributed to the £34.2m costs “impacted by one-off exceptional costs relating to the IPO and subsequent refinancing.”

Adjusted EBITDA increased by 23.5% to £41.2m, resulting in an improved margin of 9.6%, the retailer also reported a 12% increase in online sales.

CEO of The Watches of Switzerland, Brian Duffy said he was “delighted” with the first  half results. 

He said: “Strong progress was made in both the UK and US markets as we continue to deliver on our growth plans.  

“The growth in revenue and profitability is testament to the distinctive luxury experience we provide. Customers continue to react very positively to our showroom portfolio elevation programme – as reflected in increased average selling price, conversion rates, and sales uplift. Our showroom projects in the UK and US have been a success in the year to date.”

He added: “Our omni-channel strategy continues as we expand our mono-brand programme in the UK along with mono-brand openings planned in the US, expansions in UK Travel retail and continued momentum online.”