Financials

Watches of Switzerland’s Jewelry Sales More Than Doubled in Q4

FinancialsMay 18, 2022

Watches of Switzerland’s Jewelry Sales More Than Doubled in Q4

The retailer also said demand for Rolex, Patek Philippe, and Audemars Piguet watches continues to exceed its supply.

2021_Watches of Switzerland Mall of America store.jpg
Pictured here is Watches of Switzerland’s new store in the Mall of America. The company’s fourth-quarter revenue was up 48 percent year-over-year.
London—Watches of Switzerland closed out its fiscal year on a high note, posting double-digit revenue growth for the fourth quarter and the full year.

“We have delivered another record year of revenue and profitability as we continue to progress our long-range plan,” said CEO Brian Duffy.

"We delivered an outstanding performance in both the U.S. and U.K., supported by broad-based sales growth across our portfolio of world-leading partner brands and driven by domestic clientele.”

Here are five important takeaways from its recent earnings report.

Watches of Switzerland had a good year.

In the fourth quarter ending May 1, the company posted £304 million ($378 million) in total revenue, up 48 percent year-over-year.

For the full year, revenue totaled £1.24 billion ($1.54 billion), a 40 percent year-over-year increase.

Sales in the luxury watches category were up 33 percent year-over-year in the quarter and up 32 percent for the full year.

Full-year online sales grew only 5 percent year-over-year, but that is compared with last year when the retailer’s stores were closed for 26 weeks due to COVID-19 lockdowns.

Compared with fiscal 2020, online sales more than doubled, up 128 percent.

In the United States, Watches of Switzerland’s fourth-quarter revenue totaled £136 million ($169 million), up 50 percent year-over-year.

For the full year, U.S. revenue rose 48 percent to £428 million ($532 million).

The retailer predicts another good year ahead.

Pandora and Brilliant Earth both forecast a slowdown ahead in their recent first quarter results, but Watches of Switzerland has a more bullish outlook.

The company said it is entering fiscal 2023 with “strong momentum” and expects to see a recovery in footfall and airport traffic.

“We enter FY23 with visibility of product supply for super high-demand brands for the remainder of the 2022 calendar year and an exciting program of new products and marketing from other brands,” said Duffy.

Looking ahead, Watches of Switzerland expects to see full-year revenue of £1.45 billion to £1.50 billion ($1.8 billion to $1.9 billion).

 Related stories will be right here … 

Its Q4 jewelry sales more than doubled year-over-year.

The retailer’s luxury watch offerings account for a majority of its revenue, but its luxury jewelry category has been picking up steam.

Revenue in the luxury jewelry category more than doubled in the fourth quarter, up 124 percent year-over-year. For the full year, revenue was up 79 percent.

The company acquired a number of independent jewelers last year, including Betteridge, which has stores in Greenwich, Connecticut, and Vail and Aspen, Colorado.

It scooped up Ben Bridge at Mall of America outside of Minneapolis-St.Paul and Timeless Luxury Watches in Plano, Texas.

Watches of Switzerland also opened its first Bulgari boutique, which added to the increase in jewelry sales.

Demand for its luxury jewelry offerings has been “very positive,” said Duffy.

The company is growing its U.S. footprint.

Watches of Switzerland didn’t stop at the above acquisitions. It’s been steadily growing its U.S. store network.

The retailer announced the opening of a flagship store in Kenwood Towne Center in Cincinnati, Ohio.

Another new flagship showroom will open this year in the American Dream mall in New Jersey.

There are also plans to relocate two Mayors showrooms in Florida.

Watches of Switzerland also recently refurbished its Rolex boutique at the Wynn Las Vegas, reopened Mayors Millenia in Florida, and expanded its mono-brand boutique network with the opening of Breitling Short Hills, New Jersey and Tudor Millenia in Florida.

As of May 1, the company operated 171 stores across the U.S. and the U.K., including 55 mono-brand boutiques.

The company is also expanding in Europe, opening six mono-brand boutiques in Sweden, Denmark, and Ireland, set to open in the first half of its current fiscal year.

Demand for its high-end watches continues to exceed supply.

Watches of Switzerland places its Rolex, Patek Philippe, and Audemars Piguet watches in its “super high demand” category.

Demand for these brands has continued to exceed supply, said Duffy.

The brands have been hampered by supply chain constraints, especially Rolex.

A “restricted supply” meant sales for these brands increased “modestly” compared with prior years. 

However, a limited supply of the above brands created an opportunity for other luxury watches, with sales of brands outside of these three more than doubling year-over-year.

The Latest

5 main.jpg
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry Catalog

Sponsored by Tasha R

18-karat gold Tiffany & Co. pocket watch Captain Arthur Rostron
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2M

Three Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.

Harris Jewelry storefront
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund Requests

A federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

Cynthia Erivo wearing Have a Heart x Cynthia Erivo collection
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ Collection

Cynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.

Weekly QuizNov 21, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Rocksbox San Francisco store
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San Francisco

The new space was designed to evoke a warm, inviting vibe.

Mary Moses Kinney
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team

Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Sotheby’s New York building
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax Fraud

The auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.

Kering logo
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability Focus

The four finalists will present their pieces at the 2025 JCK Las Vegas show.

Model wearing pieces from Camera Oscura collection
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New Collection

The “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.

Columbia Gem House “Pebbles to Pines” fundraiser
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation Efforts

The money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.

The jewelry symposium 2025
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship Applications

The event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.

Stock image of police cars with lights on
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry Store

Local reports identified the woman as the wife of the jewelry store owner.

Tsar Ferdinand I Bulgaria colored diamond pin and emerald diamond ring
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry Sale

A collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.

Trove NYC flagship exterior
MajorsNov 19, 2024
Trove Opens First US Flagship in NYC

The Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.

Snoop Dogg and Carolyn Rafaelian
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love

“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.

Helzberg CEO Brad Hampton
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s Rebrand

Hampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.

Andrea Jose jewelry
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry Week

The group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.

Dolly Parton and Kendra Scott
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra Scott

The collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.

IGI Expressions
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition Returns

This year’s theme asks designers to take inspiration from classic fairy tales.

New York Comic Con Javits Center crowd
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic Con

Senior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.

Marie Lichtenberg and Raiz’in collection
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ Designs

The latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.

Citizen 100th Anniversary Limited Edition #1 Pocket Watch
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket Watch

No. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.

My Next Question store security episode
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure

On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.

18th century diamond necklace
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M

Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.

Saks Fifth Avenue Holiday Window
MajorsNov 14, 2024
Saks Fifth Avenue Cancels Holiday Light Display

Instead of its usual elaborate display, the store will illuminate its façade and frame the windows to highlight its flagship’s architecture.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy