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Watches of Switzerland Group PLC on Wednesday reported double-digit rises in both interim profit and revenue, boasting ‘ongoing’ market share gains.
Watches of Switzerland is a Leicester, England-based luxury watch retailer.
Shares were down 6.4% at 897.50 pence each on Wednesday morning in London.
In the six months that ended on October 30, it reported revenue of £765 million, up 31% from £586 million the previous year. The company noted continued ‘strong demand for luxury watches and jewellery, with growth driven by increases in average selling price and volume’.
Particularly in the US, revenue during the period surged by 86% to £311 million from £167 million.
Total pretax profit rose 28% to £83 million from £65 million. Operating profit also increased by 28% to £93 million from £72 million the year before.
Chief Executive Officer Brian Duffy said: ‘I am pleased with our strong performance in the first half of the financial year which reflects our leadership position and the strength of our longstanding brand partnerships as we continue to take market share. We continue to expand our retail network, opening a total of 20 showrooms across the UK, US and Europe in the first half of [financial 2023], and to invest in elevating the luxury experience for our clients through showroom refurbishments.
Adjusted earnings before interest, tax, depreciation and amortisation amounted to £104 million, up 26% from £83 million.
Net debt stood at £26 million as of October 30, compared to net cash of £30 million on October 31 a year prior.
Looking ahead, Watches of Switzerland noted that trading in the holiday period so far has been in-line with its expectations.
As a result, Watches of Switzerland kept its full-year guidance unchanged which expects revenue between £1.50 billion and £1.55 billion.
By Xindi Wei, Alliance News reporter
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