Financials

Watches of Switzerland’s U.S. Sales Continue Climbing in Q3

FinancialsFeb 10, 2023

Watches of Switzerland’s U.S. Sales Continue Climbing in Q3

Demand for luxury watches continues to exceed supply, spelling a strong quarter for the company.

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 third-quarter overall revenue was up 17 percent year-over-year, and up 35 percent in the United States.
London—Watches of Switzerland had a strong third quarter as demand for luxury watches once again exceeded supply.

Its jewelry category, however, posted muted growth after a double-digit jump in the previous quarter.

CEO Brian Duffy said, “I am pleased with our strong Q3 performance, which is testament to our continued investment in leading showroom design, the strength of our brand partnerships, our scale, our dedication to omnichannel excellence, and our exceptional client service.”

The company is confident about the rest of the year, with plans to continue expanding.

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

Watches of Switzerland’s U.S. revenue soars after strategic acquisitions.

The company posted strong results, seeing double-digit growth in the third quarter and the first nine months, but its performance in the United States stood out.

For the third quarter ending Jan. 29, the company posted £407 million ($493.9 million) in total revenue, up 17 percent year-over-year.

For the first nine months of the year, revenue was £1.17billion ($1.42 billion), up 25 percent year-over-year.

The company’s recent acquisitions of independent U.S.  jewelers, including Betteridge and a Ben Bridge store, have bolstered its numbers in the country.

In the U.S., Watches of Switzerland’s revenue climbed 35 percent in Q3, totaling £169 million ($205.1 million).

For the first nine months, revenue in the region totaled £480 million ($582.4 million), up 64 percent year-over-year.

Luxury watches drove overall revenue growth, said the company, but its e-commerce performance was also strong, up 5 percent year-over-year in the quarter.

The company said it has invested in its omnichannel strategy by improving its product range, increasing next-day delivery availability, and expanding its virtual boutique team that offers client services.

In the high-end watch world, demand continues to exceed supply.

It’s a continuation of a trend seen in recent quarters.

Quarterly sales in the luxury watches category totaled £340 million ($412.6 million), up 21 percent year-over-year.

For the first nine months, revenue in the category totaled £1 billion ($1.22 billion), up 28 percent year-over-year.

Notably, pre-owned watches continue to do well, said the company, delivering strong revenue growth in the U.S. and the U.K.

The luxury jewelry category loses luster as growth slows.

Watches of Switzerland acquired a number of independent jewelers in 2021, including Betteridge, which has stores in Greenwich, Connecticut, and Vail and Aspen, Colorado.

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

The company also opened its first Bulgari boutique, which supplemented jewelry sales but could not save the quarter. 

In Q3, revenue in Watches of Switzerland’s luxury jewelry category slipped 2 percent year-over-year to £41 million ($49.8 million) in the third quarter, a notable difference from the 38 percent rise seen in the second quarter. 

In the first nine months, jewelry sales were up 18 percent to £97 million ($117.7 million).

 Related stories will be right here … 

Watches of Switzerland maintains a confident outlook.

The company stands firm on its guidance as it finishes out its fiscal year.

“Looking ahead, we remain confident that our strategy will further enhance our leadership position as we continue to deliver on our long range plan objectives,” said Duffy.

Watches of Switzerland upped its fiscal guidance in the previous quarter, citing a change in the foreign exchange rates.

It is maintaining its outlook of £1.5 billion to £1.55 billion ($1.7 billion to $1.8 billion) in sales.

“We believe 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. We remain confident in our long-range plan objectives,” said the company.

Watches of Switzerland continues its expansion plans.
 
In addition to its 2021 acquisitions, the company has been opening new stores in the U.S., the U.K., and Europe, and refurbishing some of its existing locations.

It has a number of committed projects for its current quarter including the opening of a new Watches of Switzerland flagship showroom in the American Dream complex in New Jersey, set to open in April. 

The company will also open its third Watches of Switzerland showroom in Manhattan, located at 
One Vanderbilt in the Midtown neighborhood, anchored by Omega and Cartier.

In its home market of London, it plans to relocate its current 900-square-foot Rolex boutique on Bond Street to a new 7,200-square-foot space on Old Bond Street.

Its European expansion includes opening its fifth mono-brand boutique, an Omega location in Stockholm, Sweden and its first mono-brand boutique in Dublin, Ireland, a TAG Heuer boutique. 

The Latest

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.

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.

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.

Weekly QuizNov 30, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
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.

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.

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.

Cast StyleBar Nordstrom
MajorsNov 29, 2023
Cast Debuts at Nordstrom, Closes on More VC Funding

The growing company also plans to open more of its own boutiques.

20180509_Buffett-header.jpg
EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on America

The best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.

J. Dostie Jewelers
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 Years

J. Dostie Jewelers will move from Lewiston to Yarmouth this spring.

Finks Jewelers new store
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th Store

It’s the company’s second location in Tennessee.

Mary Tyler Moore and a pair of Elsa Peretti Bone Cuffs
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction

You can have this jewelry, why don’t you take it?

Original Miami Beach Antique Show 2024
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 Years

Next year’s milestone show will be full of educational programming and collaborations.

De Beers Metamorphosis high jewelry earrings
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday Season

Sales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.

Platinum Born new collection
CollectionsNov 27, 2023
See the New ‘Platinum Born’ Jewelry

The brand has released five new collections.

Frank Adams Jewelers
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’

The Albany Business Review recently honored the 100-year-old company.

GIA Dr. John W. Valley
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of Governors

To honor his legacy, GIA has set up a scholarship in his name.

Stock image of police car with its lights on
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the Road

There have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.

Buddha Mama citrine bangle
TrendsNov 22, 2023
Amanda’s Style File: November Glow

These 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.

Columbia Gem House fundraiser
SourcingNov 22, 2023
Columbia Gem House Raises $12K for Wildlife

The money will help a nonprofit rehabilitate sea turtles.

×

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