FinancialsOct 25, 2023
Kering’s Q3 Sales Slide Amid Luxury Sales Slowdown FinancialsNov 08, 2023
Watches of Switzerland’s Jewelry Sales Sink in Q2
Sales of pre-owned watches, however, grew 80 percent following the company’s rollout of the Rolex Certified Pre-Owned program.
Pictured here is Watches of Switzerland’s store in the Mall of America in Bloomington, Minnesota. Watches of Switzerland CEO Brian Duffy described the consumer environment as “difficult” in the first half of 2023.
London—Watches of Switzerland had a rough first half of the year, with jewelry sales down double digits and watch sales virtually flat.
CEO Brian Duffy pointed to a “difficult consumer environment” as the company released its second-quarter results Tuesday, while adding that several of the company’s Mappin & Webb showrooms in the United Kingdom have been closed for upgrades though they are set to reopen before the holiday season.
Pre-owned watch sales, however, were a bright spot on Watches of Switzerland’s balance sheet, up 80 percent year-over-year in the second quarter.
Duffy noted a positive response to the company’s rollout of the Rolex Certified Pre-Owned program, launched in the United States in July and in the U.K. in September.
For the second quarter ending Oct. 29, the company posted £379 million ($466 million) in total revenue, up 1 percent year-over-year at actual rates, though up 5 percent at constant currency rates.
In the U.S., Watches of Switzerland’s revenue grew 4 percent (11 percent at constant currency rates) in Q2, totaling £165 million ($203 million).
For the first half of the year, Watches of Switzerland’s total revenue was £761 million ($936 million), flat year-over-year (up 2 percent at constant currency rates).
E-commerce sales slipped 4 percent, which the company attributed to tough comps and the overall drop in jewelry sales.
In the U.S., first-half revenue totaled £328 million ($403 million), up 5 percent year-over-year (up 11 percent at constant currency rates).
“We sustained strong momentum in the U.S,” Duffy said.
The luxury jewelry category struggled with revenue down 18 percent in the quarter (down 16 percent at constant currency rates) and down 17 percent in the first half of the year (down 15 percent at constant currency rates).
“This reflects market trends impacted by overall consumer sentiment and by a repositioning to full-price sales in the U.S.,” said the company.
Looking at watches, quarterly sales in the luxury watches category rose 3 percent year-over-year (up 6 percent at constant currency rates) while first-half sales in the category were flat (up 3 percent at constant currency rates).
“Demand for luxury watches remains robust and continues to exceed supply, with consistent additions to and conversions of the client ‘Registration of Interest’ lists, and average selling prices continuing to increase,” said Duffy.
Watches of Switzerland’s “services/other” segment saw solid growth, up 8 percent in the quarter (up 9 percent at constant currency rates) and up 6 percent in the first half (up 7 percent at constant currency rates).
Related stories will be right here …
CEO Brian Duffy pointed to a “difficult consumer environment” as the company released its second-quarter results Tuesday, while adding that several of the company’s Mappin & Webb showrooms in the United Kingdom have been closed for upgrades though they are set to reopen before the holiday season.
Pre-owned watch sales, however, were a bright spot on Watches of Switzerland’s balance sheet, up 80 percent year-over-year in the second quarter.
Duffy noted a positive response to the company’s rollout of the Rolex Certified Pre-Owned program, launched in the United States in July and in the U.K. in September.
For the second quarter ending Oct. 29, the company posted £379 million ($466 million) in total revenue, up 1 percent year-over-year at actual rates, though up 5 percent at constant currency rates.
In the U.S., Watches of Switzerland’s revenue grew 4 percent (11 percent at constant currency rates) in Q2, totaling £165 million ($203 million).
For the first half of the year, Watches of Switzerland’s total revenue was £761 million ($936 million), flat year-over-year (up 2 percent at constant currency rates).
E-commerce sales slipped 4 percent, which the company attributed to tough comps and the overall drop in jewelry sales.
In the U.S., first-half revenue totaled £328 million ($403 million), up 5 percent year-over-year (up 11 percent at constant currency rates).
“We sustained strong momentum in the U.S,” Duffy said.
The luxury jewelry category struggled with revenue down 18 percent in the quarter (down 16 percent at constant currency rates) and down 17 percent in the first half of the year (down 15 percent at constant currency rates).
“This reflects market trends impacted by overall consumer sentiment and by a repositioning to full-price sales in the U.S.,” said the company.
Looking at watches, quarterly sales in the luxury watches category rose 3 percent year-over-year (up 6 percent at constant currency rates) while first-half sales in the category were flat (up 3 percent at constant currency rates).
“Demand for luxury watches remains robust and continues to exceed supply, with consistent additions to and conversions of the client ‘Registration of Interest’ lists, and average selling prices continuing to increase,” said Duffy.
Watches of Switzerland’s “services/other” segment saw solid growth, up 8 percent in the quarter (up 9 percent at constant currency rates) and up 6 percent in the first half (up 7 percent at constant currency rates).
Looking to the year ahead, the company plans to continue expanding and revamping its store network.
It announced Tuesday that it has acquired 19 luxury watch showrooms from Ernest Jones, a Signet Jewelers-owned, U.K.-based brand—14 multi-brand showrooms and five mono-brand boutiques.
Ernest Jones operates about 180 locations, as per Signet Jeweler’s website.
The price of the acquisition, expected to be finalized this month, was not disclosed.
As of Oct. 29, Watches of Switzerland had 211 showrooms across the U.S., U.K., and Europe.
The company maintained its fiscal-year sales and profit guidance, anticipating sales of £1.65 billion to £1.7 billion ($2.03 billion to $2.09 billion), meaning growth of 8 to 11 percent at constant currency rates.
Editors' Picks
Sponsored by
More on Financials
The Latest
Policies & IssuesFeb 18, 2025
New Customs Requirements for Diamond Imports: What We KnowBeginning in April, companies importing diamonds into the United States will have to list the country in which the diamonds were mined.
AuctionsFeb 18, 2025
A Menagerie of Fabergé Coming to Sotheby’sAround 30 whimsical Fabergé animal carvings will go up for auction at Sotheby’s Geneva in May.
SourcingFeb 18, 2025
Celine Assimon Stepping Down as CEO of De Beers JewellersAssimon will be leaving at the end of February after nearly five years with De Beers.
Brought to you by
Get Ready for the JA New York Spring ShowThis year will feature a new MJSA Showcase and partnership with Piazza Italia.
CollectionsFeb 18, 2025
Tabayer Debuts Its First Men’s Jewelry SelectionsDesigns from the brand’s “Oera” collection have been reimagined with modern masculinity in mind.
Weekly QuizFeb 13, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingFeb 14, 2025
Navneet Gems Now Offering Unheated Montana SapphiresThe wholesale collection features material from the Rock Creek mine in a variety of colors.
CollectionsFeb 14, 2025
Carolyn Rafaelian Partners with ‘Long Island Medium’ StarThe “Divinely Guided” collection, created in collaboration with Theresa Caputo, features symbols that celebrate the power of connection.
Brought to you by
3 Ways to Capitalize on America’s Newfound Love of Colored GemsColored stones are stepping into a jewelry spotlight typically reserved for diamonds—are you ready to sell color?
CollectionsFeb 14, 2025
Piece of the Week: Lorraine West’s Diamond ‘Open Heart’ RingShow some love on Valentine’s Day with this 14-karat yellow gold ring that features pavé diamonds.
CrimeFeb 13, 2025
Macy’s Employee Foils $1.5M Jewelry Theft The employee confronted the thief, causing the suspect to flee and leave behind the suitcases full of jewelry.
SourcingFeb 13, 2025
Namibian Diamond Co. Suspends CEO, COO After Deadly Heist Namib Desert Diamonds also put its security manager on leave following last month’s robbery that left one employee dead.
Events & AwardsFeb 13, 2025
AGTA Announces Buyer’s Choice Award Winners for Spectrum, Cutting EdgeAGTA recently concluded its 2025 GemFair event in Tucson and is already gearing up for next year’s show, set for Feb. 2-6, 2026.
CollectionsFeb 13, 2025
Royal Chain Releases Its Spring 2025 CatalogMore than 400 new pieces are featured in the supplier’s latest catalog.
TrendsFeb 13, 2025
Amanda’s Style File: Hearts for Valentine’s DayThis curation celebrates love with heart-shaped jewelry of all shapes and sizes.
Policies & IssuesFeb 13, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires The fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
TrendsFeb 12, 2025
5 Engagement Ring Trends Expected to Rule 2025From chunky bands to vintage diamond cuts and bezel settings, these are the trends experts are seeing take over the bridal market.
EditorsFeb 12, 2025
Q&A: Marion Fasel on the History of Diamond Engagement RingsFasel discusses researching her new book, the most enduring engagement ring styles, and the diamond shape Taylor Swift will pick.
CollectionsFeb 12, 2025
De Beers Jewellers’ New High Jewelry Pays Homage to the Beauty of TreesThe “Essence of Nature, Chapter One” collection echoes trees and roots, literally and figuratively, through three sets of high jewelry.
SourcingFeb 12, 2025
SRK Announces Notable Reduction in Greenhouse Gas EmissionsLate last year, the India-based diamond manufacturer recorded emissions per carat that are 34 percent lower than the industry average.
ColumnistsFeb 12, 2025
Peter Smith: 9 Store Manager Archetypes Smith details the types of store managers he’s encountered, with the goal of helping retailers find a person who’s a fit for their store.
TechnologyFeb 12, 2025
MyGemma Now Offers Consignment ServiceThe secondhand reseller stocks pre-owned designer jewelry and watches, along with other luxury goods.
CollectionsFeb 12, 2025
Ghirardelli Is Slipping Chocolate Into a Locket This Valentine's DayThe limited-edition “Chocolocket” fits a mini square of Ghirardelli chocolate inside.
Events & AwardsFeb 11, 2025
JA Seeking Nominations for Its Next ‘20 Under 40’ ClassThe program has been expanded to include a “20 Under 40” list for jewelry suppliers and is accepting nominations through Feb. 19.
CrimeFeb 11, 2025
2 Men Charged With Selling Stolen Jewelry, Watches in NYC Diamond DistrictOne of the men is said to be connected to the South American crew charged with burglarizing Cincinnati Bengals QB Joe Burrow’s home.
WatchesFeb 11, 2025
Bulgari, MB&F Launch Reimagined ‘Serpenti’ WatchThe brands immersed one of Bulgari’s most famous historical icons in MB&F’s ultra-mechanical universe of haute horlogerie.
MajorsFeb 11, 2025
Midas Chain Releases First Diamond CollectionThe jewelry manufacturer has launched more than 100 pieces made with natural diamonds.
SurveysFeb 10, 2025
Jewelry Resilient in 2024 Even As Luxury Sales Slipped, Says Bain & Co.Bain & Co.’s latest report on the luxury market examines why the market’s customer base is shrinking and how to appeal to consumers in 2025.
