US Sales Grow 44% for Watches of Switzerland in ‘Tremendous’ Year
Plus, CEO Brian Duffy on how supply shortages have spread to brands beyond Rolex and Patek Philippe.
The company has had a “tremendous year,” said CEO Brian Duffy.
“It is particularly pleasing to have delivered this performance against such strong prior-year comparatives, with the expertise and dedication of my colleagues proving invaluable,” he added.
Here are five important takeaways from the company’s recent earnings report, including Duffy’s take on the luxury watch supply problem.
Watches of Switzerland had a strong start to the year.
For the fiscal year ending May 1, the company posted £1.24 billion ($1.48 billion) in total revenue, up 37 percent year-over-year.
Sales in the luxury watches category rose 36 percent year-over-year on a constant currency basis.
Online sales climbed 5 percent year-over-year, but more than doubled compared to fiscal 2020, up 128 percent.
In the United States, Watches of Switzerland’s revenue totaled £428 million ($512.2 million), up 44 percent year-over-year.
Online sales in the U.S. are performing particularly well, said the company, with year-over-year growth driven by “expanded brand offerings, dedicated inventories, and marketing investment.”
The year ahead looks bright.
While companies like Pandora and Brilliant Earth have been hedging their bets, forecasting a slowdown in sales ahead, Watches of Switzerland has maintained a more bullish outlook.
The company said it’s heading into fiscal 2023 with “strong momentum” and believes the worst of the pandemic-related disruptions is behind it.
Watches of Switzerland predicted a recovery in foot traffic, including in its airport stores.
“Whilst we are cognizant of the wider macroeconomic environment, we believe the strength of the luxury watch category, with unique supply/demand dynamics, together with the success of our model will continue to support sustainable strong sales growth,” said the company.
Looking ahead, Watches of Switzerland maintained its full-year revenue guidance, expecting to reach £1.45 billion to £1.50 billion ($1.8 billion to $1.9 billion).
The jewelry category is still going strong.
Watches of Switzerland is best known for its luxury watch offerings, but its high-end jewelry category has been doing exceptionally well recently.
Revenue in the luxury jewelry category climbed 86 percent year-over-year on a constant currency basis.
The growth reflects a strong market, said the company, but the category also has benefited greatly from recent acquisitions.
Watches of Switzerland acquired a number of independent jewelers last year, including Betteridge, which has stores in Greenwich, Connecticut, and Vail and Aspen, Colorado.
It also scooped up the Ben Bridge store at Mall of America outside 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.
The company is continuing to grow its U.S. footprint.
Watches of Switzerland wasn’t content with just its recent acquisitions; it continues to open new stores here as well.
In the U.S, the company has 23 multi-brand stores, up from 17 last year, and 17 mono-brand stores, up from 13.
As of May 1, Watches of Switzerland had a total of 171 stores across the U.S. and U.K.
The retailer acquired a Rolex-anchored jewelry store in New Jersey last month, and recently opened a flagship store in Kenwood Towne Center in Cincinnati, Ohio.
The company also sunk money into its e-commerce performance in the U.S., investing in pre-owned watch e-tailer Analog:Shift, fitting it with a redesigned website, dedicated inventories, and a new office in New York.
“Our sustained capital investment has continued to support our growth plans. We have seen a strong performance from our recently opened and refurbished showrooms in the U.K. and U.S., and we have big plans for our European business,” said Duffy.
The company opened a Breitling boutique in Stockholm last month, with plans to open five mono-brand boutiques in Sweden, Denmark and Ireland this year.
A strong demand for luxury watches is fueling the company’s confidence.
Demand for high-end watches continues to exceed supply.
Watches of Switzerland has placed Rolex, Patek Philippe, and Audemars Piguet watches in its “super high demand” category.
In an interview with Bloomberg, Duffy said the supply issue has also spread to brands like Zenith, Omega, and IWC.
It’s difficult to keep Zenith chronographs, IWC pilot watches and Omega James Bond Seamaster and Speedmaster models in stock, he told Bloomberg.
“A lot of what we are selling we can’t get enough of in the first place,” Duffy said. “The whole industry is characterized by more demand than supply.”
This has been mostly a positive for the company, which reported average selling price growth across its brands.
Watch prices are already up an average of 4 to 5 percent, he said, but the company doesn’t expect to implement another “significant” price increase this year.
In a press release, Duffy said: "We enter FY23 with strong momentum with consumer demand continuing to outpace supply, and within this environment, we are benefitting from our strength both in showrooms and online.”
Watches of Switzerland expects to report its next results on Aug. 16.
Editor’s note: This story was corrected post-publication to reflect the fact that these results are for the full fiscal year, not the first quarter as previously reported. National Jeweler regrets the error.
The Latest
The one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.
“My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.
The gemstone show is slated to take place at the Scottish Rite Cathedral.
The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.
The suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.
Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.
A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
The online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.
The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.
Roy Safit took over the role on Jan. 1.
Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.
The company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.
Now in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.
Core retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.
The “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.
Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.
Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.
Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.
The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
The closures are part of the retailer’s plan to close 150 locations over a three-year period.