Financials

Watches of Switzerland’s U.S. Sales Soar 86% in H1

FinancialsNov 10, 2022

Watches of Switzerland’s U.S. Sales Soar 86% in H1

The company opened five stores in the United States in the second quarter as it continues growing its footprint.

2021_Watches of Switzerland Mall of America store.jpg
Pictured here is Watches of Switzerland’s store in the Mall of America. The company’s second-quarter revenue was up 29 percent year-over-year.
London—Watches of Switzerland had a strong second quarter as demand continued to exceed supply.

The watch company has high hopes for the months ahead, raising its fiscal year guidance.

“We are pleased to report another quarter of strong trading driven by broad-based sales growth across our portfolio of world-leading partner brands,” said CEO Brian Duffy.

Here are five important takeaways from the company’s recent earnings report.

Watches of Switzerland posted double-digit growth in the second quarter and first half.

For the second quarter ending Oct. 30, the company posted £374 million ($424.5 million) in total revenue, up 29 percent year-over-year.

In the United States, Watches of Switzerland’s revenue climbed 73 percent in Q2, totaling £159 million ($180.7 million) compared with £92 million ($104.6 million) in the prior-year period.

For the first half of the year, revenue was £765 million ($869.5 million), up 31 percent year-over-year.

In the U.S., first-half revenue totaled £311 million ($353.5 million), up 86 percent year-over-year.

The company’s recent acquisitions of independent jewelers, including Betteridge and a Ben Bridge store, have bolstered its numbers, but it would have seen double-digit growth even without them.

Excluding its acquisitions, quarterly revenue was still up 30 percent at constant exchange rates in the U.S. while first-half revenue climbed 44 percent.

Demand is still exceeding supply in the watch category.

Demand for the company’s high-end watches continues to outpace supply, a trend in its recent quarters.

Watches of Switzerland recently placed Rolex, Patek Philippe, and Audemars Piguet watches in its “super high demand” category but said supply issues have also impacted Zenith, Omega, and IWC.

“Demand remained strong through the quarter and continues to exceed supply, with client registration lists extending as consumers respond to innovative new products, impactful marketing and elevated client service,” said Duffy.

Quarterly sales in the luxury watches category rose 30 percent year-over-year while first-half sales in the category climbed 31 percent.

 Related stories will be right here … 

The luxury jewelry category had another strong quarter.

Jewelry sales also continue to be strong at Watches of Switzerland’s stores.

Revenue in the luxury jewelry category climbed 38 percent year-over-year to £29 million ($33 million) in the second quarter.

In the first half, jewelry sales were up 37 percent to £56 million ($63.7 million).

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 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.

Movements in foreign exchange rates led to a more positive outlook.

Watches of Switzerland upped its fiscal guidance for the year ahead, citing a change in the foreign exchange rates.

The company is projecting a pound-to-dollar exchange rate of $1.20 in the second half of the year, compared with $1.14 as of press time.

This would mean an adjustment of about £15 million ($17 million) to group revenue and about £2 million ($2.3 million) to adjusted EBIT.

The company expects to reach £1.5 billion to £1.55 billion ($1.7 billion to $1.8 billion) in sales, up from its prior guidance of £1.45 billion to £1.50 billion ($1.65 billion to $1.7 billion).

It is predicting “more challenging market conditions in the second half” but expressed confidence in the strength of the watch and jewelry categories.

“While we continue to monitor the wider macroeconomic environment, we believe that the strength of the luxury watch and jewelry categories, the unique supply/demand dynamics of luxury watches and client registration lists, our portfolio of leading brand partnerships, and the success and agility of our model will continue to support long term sustainable sales growth,” said the company.

Its guidance reflects the “current visibility of supply of key brands,” announced pricing, and its confirmed showroom refurbishments, openings, and closures. It excludes “uncommitted capital projects and acquisitions.”

Watches of Switzerland is expanding its footprint.
 
In addition to its recent acquisitions, the company has been opening new stores in the U.S., the U.K., and Europe, and refurbishing some as well.

In the second quarter, the company opened 17 stores, including five in the U.S., nine in the U.K., and three in Europe.

Five mono-brand boutiques opened in the U.S., including TAG Heuer and Breitling stores in Boca Raton, Florida.

In its home market of London, Watches of Switzerland recently announced that next year 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 Latest

Pantone color of the year 2024
TrendsDec 08, 2023
Pantone’s Color of the Year Is Warm and Fuzzy

The peachy hue also marks the program’s 25th anniversary.

Mary Tyler Moore and Elsa Peretti for Tiffany & Co. Bone Cuffs
AuctionsDec 08, 2023
Sotheby’s Sold All Mary Tyler Moore’s Jewelry

The 21 pieces up for auction, including Tiffany & Co. jewels and a Cartier watch, garnered more than $430,000 across two sales.

Inesa Kovalova’s Links pin
CollectionsDec 08, 2023
Piece of the Week: A ‘Strong & Precious’ Brooch

Centered on a sunny heliodor, the “Links” pin was designed by Ukrainian jewelry artist Inesa Kovalova.

De Beers | Diamonds Falling
Brought to you by
The Most Important “C” in Diamonds: Confidence!

Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.

Lashbrook ring
MajorsDec 07, 2023
Lashbrook Sues Manly Bands for Allegedly Copying Designs

The wedding band company is also accusing its former customer of removing watermarks from Lashbrook images for its own use.

Weekly QuizDec 07, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Rough diamonds from Alrosa
Policies & IssuesDec 07, 2023
The G7’s Long-Awaited Statement on Russian Diamonds Is Here

It provides a timeline for the implementation of new restrictions, but no details.

24 Karat Club of New York new members
MajorsDec 07, 2023
24 Karat Club of New York Welcomes New Members

The organization has elected 12 new additions.

Platinum  Guild International Diamond Rings
Brought to you by
If It’s Custom, Make It Platinum

With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.

National Jeweler columnist Sherry Smith
ColumnistsDec 06, 2023
On Data: How Are Independents Doing So Far This Holiday Season?

Sherry Smith breaks down the numbers on jewelry sales in November and reveals the category that “emerged as a standout.”

133 carat yellow diamond
AuctionsDec 06, 2023
A Yellow Diamond, Hollywood Jewels Stand Out at Sotheby’s

Additional lots will be offered in the Fine Jewels online sale through Dec. 7.

GIA logo
GradingDec 06, 2023
GIA Debuts Revamped Graduate Jeweler Program

By mixing creative and practical skills, the new course hopes to fill the industry’s bench jeweler gap.

A 1930s gem-set and enamel ‘Maltese cross’ cuff attributed to Verdura for Chanel (left) and a loose cushion-cut Burmese sapphire weighing 11.87 carats (right) were the top lots in Bonhams New York Jewels auction this week.
AuctionsDec 06, 2023
Verdura Cuff, Burmese Sapphire Shine at Bonhams

Several other colored gemstones joined the pieces in the top 10 list.

Memorial for slain jeweler Peter Damian Arguello in Wheat Ridge, Colorado
CrimeDec 05, 2023
Police Continue to Investigate Murder of Colorado Jeweler

Peter Damian Arguello, the owner of Peter Damian Fine Jewelry & Antiques, was shot and killed in an apparent robbery last week.

Tanishq store
MajorsDec 05, 2023
Tanishq Continues U.S. Expansion With 2 New Stores

The Indian jewelry giant has opened locations in Houston and Frisco, Texas.

Grandview Klein Diamonds Namibia scholarship winners
SourcingDec 05, 2023
Grandview Klein Awards Two Scholarships in Namibia

Each student was provided with the full amount of tuition for the Namibia University of Science & Technology.

De Beers Ryan Perry and David Prager
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024

Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.

Chrono24 ChronoPulse
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury Watches

The watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.

David Bouffard Signet Jewelers
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJC

The industry veteran will step down from both roles in April 2024.

David Webb turquoise and lapis ring
TrendsDec 04, 2023
Amanda’s Style File: Decadent December

Tanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.

Lightbox x Roséate Light Wand pendants
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany Exec

The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.

Muzo emerald and argyle pink diamond necklace
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond Necklace

It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.

Pink Supreme Diamond
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong Kong

The 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.

Claire’s CFO COO Chris Cramer
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COO

Chris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.

133 carat yellow diamond
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow Diamond

The stone headlining the upcoming sale could fetch up to $5 million.

Kwiat diamonds
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ Program

The retail offering lets customers track their diamond’s journey.

Diamond development hub in Angola
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola

The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.

Holiday shoppers holding bags
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRF

From Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.

×

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