WatchesAug 04, 2022
4 Takeaways from Chrono24’s Analysis of the Luxury Watch MarketFinancialsAug 17, 2022
Watches of Switzerland’s US Sales Double in Q1
The company posted a strong start to the year but is cautious about the second half.
Pictured here is Watches of Switzerland’s store in the Mall of America. The company’s first-quarter revenue was up 31 percent year-over-year.
London—Watches of Switzerland kicked off its fiscal year on a high note but is looking cautiously to the year ahead.
“The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter,” said CEO Brian Duffy.
“Despite the well-publicized concerns about the macro-environment, demand for our products remains robust, with client registration of interest lists continuing to extend.”
Here are five important takeaways from the company’s recent earnings report.
Watches of Switzerland had a strong start to the year, with U.S. revenue doubling.
For the first quarter ending July 31, the company posted £391 million ($471.4 million) in total revenue, up 31 percent year-over-year.
Sales in the luxury watches category rose 32 percent year-over-year.
Online sales climbed 14 percent year-over-year as the company continues to invest in its multi-channel strategy.
In the United States, Watches of Switzerland’s revenue doubled, totaling £152 million ($183.3 million) compared with £76 million ($91.6 million) in the prior-year period.
Differentiating itself from the competition has been key to its success, said Duffy.
“Within a large, diffuse, and growing market, we are benefitting from our distinctive business model—namely our investment in leading store design, the strength of our brand partnerships, our international scale, our bold marketing campaigns, our advanced systems technology, and our dedication to client experience,” he said.
The company is maintaining its guidance, citing a “more challenging” second half of the year.
Watches of Switzerland is reiterating its guidance for fiscal 2023, due to “a potentially more challenging trading environment” in the second half of the year.
The company expects to reach £1.45 billion to £1.50 billion ($1.8 billion to $1.9 billion) in revenue with adjusted EBITDA flat to 0.5 percent.
“While we continue to monitor the wider macro-economic environment, we believe that the strength of the luxury watch category, with its unique supply/demand dynamics, together with the success and agility of our model, will continue to support long-term sustainable strong sales growth,” said the company.
Its luxury jewelry category is keeping up the momentum.
Watches of Switzerland is best known for its luxury watch offerings, but its high-end jewelry category has been doing particularly well in recent quarters.
Revenue in the luxury jewelry category climbed 36 percent year-over-year to £27 million ($32.6 million) in the first quarter.
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 recently opened its first Bulgari boutique, which added to the increase in jewelry sales.
Related stories will be right here …
“The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter,” said CEO Brian Duffy.
“Despite the well-publicized concerns about the macro-environment, demand for our products remains robust, with client registration of interest lists continuing to extend.”
Here are five important takeaways from the company’s recent earnings report.
Watches of Switzerland had a strong start to the year, with U.S. revenue doubling.
For the first quarter ending July 31, the company posted £391 million ($471.4 million) in total revenue, up 31 percent year-over-year.
Sales in the luxury watches category rose 32 percent year-over-year.
Online sales climbed 14 percent year-over-year as the company continues to invest in its multi-channel strategy.
In the United States, Watches of Switzerland’s revenue doubled, totaling £152 million ($183.3 million) compared with £76 million ($91.6 million) in the prior-year period.
Differentiating itself from the competition has been key to its success, said Duffy.
“Within a large, diffuse, and growing market, we are benefitting from our distinctive business model—namely our investment in leading store design, the strength of our brand partnerships, our international scale, our bold marketing campaigns, our advanced systems technology, and our dedication to client experience,” he said.
The company is maintaining its guidance, citing a “more challenging” second half of the year.
Watches of Switzerland is reiterating its guidance for fiscal 2023, due to “a potentially more challenging trading environment” in the second half of the year.
The company expects to reach £1.45 billion to £1.50 billion ($1.8 billion to $1.9 billion) in revenue with adjusted EBITDA flat to 0.5 percent.
“While we continue to monitor the wider macro-economic environment, we believe that the strength of the luxury watch category, with its unique supply/demand dynamics, together with the success and agility of our model, will continue to support long-term sustainable strong sales growth,” said the company.
Its luxury jewelry category is keeping up the momentum.
Watches of Switzerland is best known for its luxury watch offerings, but its high-end jewelry category has been doing particularly well in recent quarters.
Revenue in the luxury jewelry category climbed 36 percent year-over-year to £27 million ($32.6 million) in the first quarter.
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 recently opened its first Bulgari boutique, which added to the increase in jewelry sales.
It’s growing its pre-owned business via Analog:Shift.
Watches of Switzerland acquired pre-owned and vintage watch seller Analog:Shift in September 2020 as a way to bolster its offerings in those categories.
Interest in vintage and pre-owned timepieces has been increasing, said the company at the time of the acquisition, and the lack of availability of select newer models from brands like Rolex and Patek Philippe added more opportunity.
Mayors Jewelers and Analog:Shift, both under the Watches of Switzerland umbrella, partnered with lifestyle brand Goop on a new e-commerce and retail venture in June.
As part of the partnership, Goop expanded its fine jewelry and timepiece assortment with a curated collection of vintage watches and jewelry staples from the brands on its website and in its Sag Harbor, New York brick-and-mortar location.
Its new Rolex boutique in London will be eight times the size of the old one.
Its home market of London is particularly important to the company.
Watches of Switzerland announced it will relocate its current 900-square-foot Rolex boutique on Bond Street to a new 7,200-square-foot space on Old Bond Street.
The move is set to take place next year.
“This new flagship will reflect the importance of the London market and the special relevance of London to the history of Rolex,” said Duffy.
Editors' Picks
Sponsored by
More on Financials
The Latest
AuctionsSep 30, 2022
Red Diamond Earns $1.8M at AuctionThe final hammer price blew the pre-sale estimate out of the water.
EditorsSep 30, 2022
The Best of Betty White’s Jewelry Sold at AuctionMichelle Graff recaps the cats, fortune cookies, and charm bracelets that caught her eye while covering the late actress’ estate sale.
Policies & IssuesSep 30, 2022
Voting Is Open for the Fairmined 100 Challenge’s Best CollectionThe winners, picked by a group of judges and voted as the public’s favorite, will be announced in a webinar on Oct. 11.
Brought to you by
6 Steps to Start a Dynamic Company CultureLearn how to better serve your employees, customers and community by having a dynamic and supportive company culture.
CollectionsSep 30, 2022
Piece of the Week: Fewer Finer’s ‘Family Bracelet’The engravable piece is a perfect family heirloom.
Weekly QuizSep 29, 2022
This Week’s QuizTest your knowledge of the latest jewelry news with this quick test.
GradingSep 30, 2022
GSI India Names Ramit Kapur Managing DirectorKapur has spent nearly two decades working in the gemological labs sector of the jewelry industry.
Supplier BulletinSep 29, 2022
How to Create an Engaging Experience and a Sparkling ReputationSponsored by Synchrony
Brought to you by
Committing to an Ethical Diamond BusinessWhile ethical mining is essential to a diamond business, they represent only a fraction of the responsibility bestowed on jewelers.
SourcingSep 29, 2022
Q&A: Constantin Wild Celebrates 175 Years in the Colored Stone Business The family business’ fourth-generation eponymous owner reflects on the milestone and the market today.
AuctionsSep 29, 2022
See the Top Lots in Christie’s Upcoming Rare Watch SaleAccording to Christie’s, the auction is its most important single-owner watch collection ever.
CollectionsSep 29, 2022
Trove Has a New Proposal: Ring BoxesThe jewelry box brand is expanding with both single and double ring boxes in red, mint green, and white.
SourcingSep 29, 2022
AGTA Names Jennifer Heebner Editor-in-Chief of its PublicationsThe association has also hired a new marketing manager and announced two staff transitions.
Policies & IssuesSep 29, 2022
JA Members Return to Capitol Hill to Voice Jewelers’ ConcernsThe topics up for discussion with lawmakers included inflation, rising interest rates, hiring challenges, and crime.
AuctionsSep 28, 2022
The 18-Carat ‘Fortune Pink’ Diamond Could Sell for $35M The pear-shaped fancy vivid pink diamond will lead the Christie’s Geneva Magnificent Jewels auction on Nov. 8.
SurveysSep 28, 2022
Consumer Confidence Rises in SeptemberU.S. consumer confidence rose for the second consecutive month as gas prices fell.
MajorsSep 28, 2022
Artistry’s 2023 Catalog Is Out NowThe jewelry catalog features an updated layout and 160 pages of product.
MajorsSep 28, 2022
JFC’s 2022 ‘Hope for the Holidays’ Program Is an Adorable Menagerie There are three designs to choose from this year, all featuring animals drawn by kids who have had wishes granted through Make-A-Wish.
AuctionsSep 27, 2022
In Betty White’s Blockbuster Estate Sale, Jewelry Held Its Own Fine jewelry comprised three of the auction’s top 10 lots, though it could not top her director’s chair or scripts from “The Golden Girls.”
CrimeSep 27, 2022
3 Suspects in Beverly Hills Smash-and-Grab Robbery ArrestedA total of four suspects are now in custody with police still on the lookout for the remaining two.
ColumnistsSep 27, 2022
Creative Connecting: Fun Ideas for Holiday 2022 In-Store EventsFrom a “whodunnit” murder mystery to a permanent jewelry party, Duvall O’Steen and Jen Cullen Williams share a wealth of suggestions.
MajorsSep 27, 2022
Stuller Releases 2 Updated Catalogs Ahead of the Holiday Season “Mountings 2023-2024” and “Diamonds & Gemstones 2023-2024” offer a vast selection of options to create custom pieces.
Events & AwardsSep 27, 2022
ICA’s 2023 Congress Will Be Held in Dubai The event will be hosted by the Dubai Multi Commodities Centre from Feb. 15-17.
IndependentsSep 26, 2022
Roberson’s Fine Jewelry to Close After 42 YearsThe store’s liquidation sale will showcase the mix of classic and unique jewels it’s known for stocking.
CollectionsSep 26, 2022
Go ‘Inside the Dream’ of Bulgari Via a New Documentary on Amazon Prime It follows Creative Director Lucia Silvestri as she crafts the brand’s high jewelry collections.
Recorded WebinarsSep 26, 2022
Watch: What Jewelers Should Know About InsuranceFrom safeguarding showcases to appraisal liability, insurance experts Mark Devereaux and Andrew Chipman share insurance tips for jewelers.
TrendsSep 26, 2022
Vahan Collabs With Wolf on a Jewelry BoxIt’s the first time in 50 years the brand has made something other than jewelry.
Events & AwardsSep 26, 2022
Texas Jewelers Association Rolls Out New Format for Design CompetitionThe competition takes place in tandem with TJA’s annual convention, known as the Texas Jewelers Roundup.
