MajorsNov 10, 2021
Watches of Switzerland Scoops Up Independents Amid ExpansionFinancialsDec 14, 2021
Watches of Switzerland Posts Strong H1 Despite Supply Woes
With Rolex watches in short supply this year, the company turned to other luxury watch brands to bolster sales.
Watches of Switzerland has a new store in the Mall of America after acquiring the location from Ben Bridge as part of its North American expansion. The company’s first-half revenue was up 45 percent year-over-year.
London—Watches of Switzerland delivered a strong first half, raising its full-year guidance as it continues its North American expansion.
In the second quarter ending Oct. 31, the company posted £288.7 million ($381.8 million) in total revenue, up 12 percent year-over-year in constant currency.
Revenue was up 36 percent compared with the second quarter of pre-pandemic fiscal 2020.
For the first half of the year, revenue totaled £586.2 million ($775.1 million), up 45 percent year-over-year and 41 percent compared with pre-pandemic fiscal 2020.
The positive performance was driven by strong demand for luxury watches and jewelry, said the company, with growth led by a significant increase in volumes of brands not hampered by supply constraints.
These “supply-constrained brands” include Rolex, Patek Philippe, and Audemars Piguet.
Due to a recent Rolex shortage, the company changed its in-store stock to being demonstration stock, CEO Brian Duffy said during a November call about the second quarter results.
“We present it as being for exhibition only, and we're doing that simply to keep a reasonable representation of the brand in store overall, not selling that stock, but customers are able to see the product, try it on, and register their interest in buying when availability is there,” he said.
Duffy said this system is “likely to remain for the indefinite future.”
In the second quarter ending Oct. 31, the company posted £288.7 million ($381.8 million) in total revenue, up 12 percent year-over-year in constant currency.
Revenue was up 36 percent compared with the second quarter of pre-pandemic fiscal 2020.
For the first half of the year, revenue totaled £586.2 million ($775.1 million), up 45 percent year-over-year and 41 percent compared with pre-pandemic fiscal 2020.
The positive performance was driven by strong demand for luxury watches and jewelry, said the company, with growth led by a significant increase in volumes of brands not hampered by supply constraints.
These “supply-constrained brands” include Rolex, Patek Philippe, and Audemars Piguet.
Due to a recent Rolex shortage, the company changed its in-store stock to being demonstration stock, CEO Brian Duffy said during a November call about the second quarter results.
“We present it as being for exhibition only, and we're doing that simply to keep a reasonable representation of the brand in store overall, not selling that stock, but customers are able to see the product, try it on, and register their interest in buying when availability is there,” he said.
Duffy said this system is “likely to remain for the indefinite future.”
The company has had to rely less on in-demand brands this year to boost its bottom line, Duffy said during a first-half earnings call last week.
The supply-challenged brands contributed less to total revenue this year—59 percent in the first half of this year compared with 61 percent in the same period last year.
“The other luxury watch segment, where we have less constraint on supply, enjoyed very strong sales growth in both the U.K. and the U.S.,” he said.
These brands contributed 28 percent this year compared with 25 percent last year.
Duffy highlighted Omega, Breitling, Cartier, TAG Heuer, and Tudor as brands who put on strong performances.
The company also couldn’t count on tourist dollars this year as travel remains slow to recover.
Tourist sales made up 34 percent of overall revenue in the first half of 2020. So far this year, tourist sales accounted for 2 percent of overall sales.
In a move to bolster revenue, the company has continued to expand in the U.S. market.
In the region, second-quarter revenue totaled 196.9 million, up 6 percent year-over-year and up 21 percent compared with the second quarter of pre-pandemic fiscal 2020.
For the first-half, U.S. revenue totaled 167.6 million, up 50 percent year-over-year and up 67 percent compared to the same period in fiscal 2020.
The company recently acquired five stores belonging to leading independent watch retailers in the U.S. as it continues its North American expansion.
It scooped up Ben Bridge at Mall of America outside of Minneapolis-St.Paul; Timeless Luxury Watches in Plano, Texas; and three Betteridge stores in Greenwich, Connecticut, and Vail and Aspen, Colorado.
As part of the expansion plan, the Ben Bridge and Timeless locations will be converted into Watches of Switzerland boutiques, while the acquired Betteridge locations will continue to operate under their own name for the “immediate future.”
The acquisitions brought its U.S. network up to 36 stores, including 22 multi-brand and 14 mono-brand boutiques, located in 12 states.
It also invested in its U.K. store network, including refurbishing five stores and adding seven stores, bringing its total to 130 as of Oct. 31.
"I am delighted with our excellent first-half year performance,” said Duffy in a press release about the results.
“Our success in both the U.K. and the U.S. has been a testament to our robust multichannel business model, the enthusiasm and commitment of our people, and the attractive dynamics of our category where demand continues to outpace supply.”
The luxury watches category climbed in the second quarter, up 8 percent year-over-year. For the first half, the category was up 41 percent.
The luxury jewelry category was up 25 percent year-over-year and up 53 percent in the first half.
“Our jewelry business is up 50 percent, so it was a good market for jewelry,” said Duffy.
“Our buying team is doing a fantastic job and selecting the right product and approach to the market, which is a branded approach,” he added, noting the company avoids promotional activity in the category.
Online sales for the first half were strong, up 29 percent year-over-year. Its physical stores were fully opened in the first half.
Due to a strong first-performance overall, the company raised its full-year guidance.
It now expects revenue of £1.15 billion to £1.20 billion, said Chief Financial Officer Anders Romberg, up from its prior guidance of £1.05 billion to £1.10 billion.
The guidance assumes there will be no disruptions to the supply chain or additional COVID-19-related lockdowns.
Editors' Picks
Sponsored by
More on Financials
The Latest
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
Weekly QuizFeb 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
Events & AwardsFeb 11, 2026
TJS Announces Roundtable, Launches New AppRegistration is now open for The Jewelry Symposium, set to take place in Detroit from May 16-19.
SourcingFeb 10, 2026
At Meeting in South Africa, Support for Natural Diamonds Picks Up Steam Namibia has formally signed the Luanda Accord, while two key industry organizations pledged to join the Natural Diamond Council.
TrendsFeb 10, 2026
Bad Bunny Wears Football-Shaped ‘Desert Diamond’ for Halftime PerformanceLady Gaga, Cardi B, and Karol G also went with diamond jewelry for Bad Bunny’s Super Bowl halftime show honoring Puerto Rico.
SurveysFeb 10, 2026
Shoppers to Spend Big on Jewelry This Valentine’s Day, Says NRFJewelry is expected to be the No. 1 gift this year in terms of dollars spent.
SourcingFeb 10, 2026
AGTA To Debut ‘Stuller Color of the Year’ Spectrum Awards CategoryThe new category asks entrants for “exceptional” interpretations of the supplier’s 2026 color of the year, which is “Signature Red.”
Policies & IssuesFeb 09, 2026
U.S., India Trade Deal One Step Closer to Being FinalizedThe White House issued an official statement on the deal, which will eliminate tariffs on loose natural diamonds and gemstones from India.
Events & AwardsFeb 09, 2026
JA Now Accepting Entries for 2026 CASE AwardsEntries for the jewelry design competition will be accepted through March 20.
IndependentsFeb 09, 2026
James Free Jewelers Unveils Revamped FlagshipThe Ohio jeweler’s new layout features a curated collection of brand boutiques to promote storytelling and host in-store events.
TrendsFeb 09, 2026
These 14 Jewels Will Melt Your Heart This Valentine’s DayFrom heart motifs to pink pearls, Valentine’s Day is filled with jewelry imbued with love.
CrimeFeb 06, 2026
Florida Man Sentenced After Selling Fake Native American Jewelry for a Decade Prosecutors say the man attended arts and craft fairs claiming he was a third-generation jeweler who was a member of the Pueblo tribe.
TrendsFeb 06, 2026
Margot Robbie, Jacob Elordi Wear Matching Cece Jewellery Signet RingsOur Piece of the Week picks are these bespoke rings the “Wuthering Heights” stars have been spotted wearing during the film’s press tour.
MajorsFeb 05, 2026
Pandora to Begin Selling Platinum-Plated JewelryThe introduction of platinum plating will reduce its reliance on silver amid volatile price swings, said Pandora.
SourcingFeb 05, 2026
De Beers Lowers Production Guidance for 2026, Anglo Mulls Another WritedownIt would be the third impairment charge in three years on De Beers Group, which continues to grapple with a “challenging” diamond market.
IndependentsFeb 05, 2026
Borsheims to Undergo Massive Renovation in the Spring The Omaha jewelry store’s multi-million-dollar renovation is scheduled to begin in mid-May and take about six months.
CollectionsFeb 05, 2026
Marco Bicego’s Amethyst Collection Travels to a Purple ParadiseThe “Paradise Amethyst” collection focuses on amethyst, pink tourmaline, garnet, and 18-karat yellow gold beads.
FinancialsFeb 05, 2026
Watches of Switzerland Reports Strong Holiday Results in Q3The retailer credited its Roberto Coin campaign, in part, for boosting its North America sales.
ColumnistsFeb 04, 2026
January Jewelry Sales: More Dollars Spent, Fewer Units Sold Sherry Smith unpacks independent retailers’ January performance and gives tips for navigating the slow-growth year ahead.
