Watches of Switzerland reported a 4% year-on-year rise in group revenue to £785m in its first half, driven by strong growth in the US market.
However, the luxury watch retailer’s adjusted EBIT dropped 9% to £66m in the 26 weeks to October 27, due to acquisition-related costs and integration efforts. Statutory profit before tax also fell 39%, reaching £41m.
Group revenue during the period increased 4% on a constant currency basis, driven by improved demand during its second quarter.
The US market was a standout, with revenue growth of 24% in Q2, while the UK and Europe saw a slight decline of 1% to £430m.
Watches of Switzerland CEO Brian Duffy said: “We are pleased to report H1 FY25 revenue growth of +4% in constant currency, reflecting an encouraging improvement in trading in Q2. This was driven by growing demand in the UK and US, alongside the acquisition of Roberto Coin during the period.”
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Luxury watch sales declined 2% in constant currency, impacted by one-off stock increases in Q1. However its pre-owned watch business performed strongly, with Rolex Certified Pre-Owned now becoming the group’s second-largest luxury watch brand.
In contrast, luxury jewellery reported strong growth, up 104% in constant currency, largely due to the Roberto Coin acquisition, which contributed £51m in revenue. Excluding Roberto Coin, luxury jewellery revenue fell 6%, with the UK market showing positive signs of recovery.
Despite the challenges, Watches of Switzerland is confident in its full-year forecast. Duffy added: “Q3 trading has started encouragingly, and with key showroom openings and ongoing digital improvements, we are well-positioned for a strong second half.”
The retailer also reported significant progress in its showroom expansion plans, with new openings scheduled for London, Manchester, Texas, and Florida.
Meanwhile the acquisition of Hodinkee, a leading global platform for luxury watch enthusiasts, is set to bolster the group’s online presence.
Looking ahead, Watches of Switzerland is maintaining its full-year guidance, expecting revenue to reach between £1.67bn and £1.73bn representing growth of 9% to 12% at constant currency.
“We are well positioned for a good holiday trading period,” added Duffy. “Our significant showroom investments and momentum in the US and UK markets give us confidence in our outlook for the second half of FY25.”
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