Watches of Switzerland H1 revenues jump on US demand, profit falls
By Michele Maatouk
Date: Thursday 05 Dec 2024
(Sharecast News) - Watches of Switzerland reported a jump in first-half revenue on Thursday amid solid US demand, but a drop in profit.
In the 26 weeks to 27 October, group revenue rose 4% to £785m, with an improvement in trading in the second quarter.
US revenue grew 11% to £355m. In the UK and Europe, however, revenue declined 1% on the previous year to £430m.
Adjusted earnings before interest, tax, depreciation and amortisation fell 7% to £87m, while statutory pre-tax profit was down 39% to £41m.
WOSG said profitability was impacted "by the lack of leverage" of fixed costs, which will reverse in the second half of the year.
Chief executive Brian Duffy said: "Our newly acquired Roberto Coin business in North America has traded strongly since acquisition and is now making a good contribution to our group. Integration is progressing well, and growth plans are underway.
"We are also encouraged by the performance of the Rolex Certified Pre-Owned programme and the sustained growth in our overall pre-owned business. Additionally, we acquired Hodinkee, a leading global digital platform for luxury watch enthusiasts, further strengthening our online sector leadership. Integration is progressing in line with our expectations."
Duffy said third-quarter trading has started "encouragingly" and the company has continued with its showroom transformation programme.
Key showroom openings in the second half include the flagship Rolex boutique in Old Bond Street, London; Audemars Piguet Town House, Manchester; Rolex introduction in Plano, Texas, and a reintroduction in Jacksonville, Florida; and the conversion of Mayors Lenox, Atlanta, to a Rolex mono-brand boutique.
"Our trading momentum through November, visibility of intake and second half opening of large showroom investments support our full year guidance, which is unchanged," he added.
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