Watches of Switzerland profits jump 23% to £155m
The company expects its revenues for FY24 to fall somewhere between £1.65bn and £1.7bn
Watches of Switzerland has posted a 23% increase in profits to £126m, up to £155m, for the year ended 30 April 2023.
The increase comes amid a 25% increase in revenues to £1.5bn compared with £1.2bn in 2022.
For the UK and Europe specifically the retailer posted revenues of £890m up 10% from the £810m it posted in the region the previous year.
Part of this uplift in UK and Europe revenue was a result of sales in airports as travel recovered after the pandemic.
It also came as a result of its investment in 15 new UK showroom openings including four mono-brand boutiques and a multi-brand showroom at Battersea Power Station, London.
The company also posted an adjusted EBITDA of £201m, an increase of 24% on the £162m it posted last year.
Its adjusted EBIT for the year was £165m, an increase of 27% compared with the £130m it posted last year.
The company expects its revenues for FY24 to fall somewhere between £1.65bn and £1.7bn.
Hugh Duffy, CEO, said: “Having closed out FY23, I would like to reflect on where we stand against the Long Range Plan we presented to the market back in the summer of 2021. Following two years of exceptional performance, sales are significantly ahead of plan, by over £200 million (excluding the benefits of favourable movements in foreign exchange, which makes the differential even greater).
“We are delighted with our progress, our momentum and our prospects for future profitable investment and growth.”
He added: “We are delighted to have launched our entry into the European market with the opening of five mono-brand boutiques in Stockholm and Copenhagen and in the final quarter of the year we opened our first mono-brand boutique in Dublin. Following the year end we opened our first mono-brand boutique in Berlin, Germany and another in the Mall of Scandinavia, Stockholm, both in partnership with TAG Heuer.
“Our new stores in Stockholm and Copenhagen are performing in line with our expectations. Our teams in these new cities are full of enthusiasm and doing a fantastic job. Consumers in these markets are responding well to our elevated showroom experience and client service.”
