Watches of Switzerland (WOS) has seen a strong boost in sales for the first half of its fiscal year, fueled by improved consumer sentiment and the strategic acquisition of Roberto Coin, a prominent jewelry brand.
Revenue Growth Across Key Markets
For the six months ending October 27, 2024, WOS reported:
- A 3% increase in revenue, reaching GBP 784.8 million ($999 million).
- A standout 8% growth in U.S. sales, totaling GBP 354.9 million ($451.7 million).
- A slight 1% decline in the UK and Europe, to GBP 429.9 million ($547.1 million).
However, the UK and Europe markets showed a positive trend, recovering from a 4% dip in Q1 to a 2% increase in Q2. Despite the overall revenue growth, the company’s profit declined 39% to GBP 28.9 million ($36.8 million).
Driving Demand With Strategic Moves
CEO Brian Duffy attributed the company’s success to key factors:
- Improved inventory levels: "We increased showroom stock levels of key brands, which drove significantly improved revenue in the U.S. during the second quarter," Duffy noted.
- The addition of Roberto Coin’s North American operations, which has contributed robustly to the group’s portfolio since its acquisition.
“This has been an encouraging improvement in trading, particularly in the U.K. and U.S. markets,” Duffy stated.
Optimistic Projections for the Full Year
WOS remains confident about its trajectory for the full fiscal year, projecting:
- 9% to 12% revenue growth, bringing sales to between GBP 1.67 billion and GBP 1.73 billion ($2.12 billion to $2.2 billion) at constant currency rates.
With the momentum carried into the third quarter, WOS is poised for sustained success as a leader in luxury watches and jewelry retail.