FinancialsNov 08, 2022
Heading Into Q4, Pandora Raises Prices on Select Items 4% 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.
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 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.
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.
More on Financials
The Latest
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry CatalogSponsored by Tasha R
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2MThree Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.
MajorsNov 21, 2024
Harris Jewelry Ordered to Reopen Claims Portal for Refund RequestsA federal court found that the jewelry store chain violated terms of the settlement reached after it was accused of defrauding customers.
Brought to you by
Navigating Cybersecurity: Essential Guidance for JewelersFrom protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ CollectionCynthia 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 QuizTest your jewelry news knowledge by answering these questions.
MajorsNov 21, 2024
Rocksbox Opens Pop-Up Store in San FranciscoThe new space was designed to evoke a warm, inviting vibe.
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.
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYCThis fall, sharpen your skills in jewelry grading, quality control and diamond assessment.
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax FraudThe auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability FocusThe four finalists will present their pieces at the 2025 JCK Las Vegas show.
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New CollectionThe “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation EffortsThe money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship ApplicationsThe event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry StoreLocal reports identified the woman as the wife of the jewelry store owner.
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry SaleA collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.
MajorsNov 19, 2024
Trove Opens First US Flagship in NYCThe Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.
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.
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s RebrandHampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry WeekThe group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra ScottThe collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition ReturnsThis year’s theme asks designers to take inspiration from classic fairy tales.
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic ConSenior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ DesignsThe latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket WatchNo. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.
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.
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.
MajorsNov 14, 2024
Saks Fifth Avenue Cancels Holiday Light DisplayInstead of its usual elaborate display, the store will illuminate its façade and frame the windows to highlight its flagship’s architecture.
