Watches of Switzerland says ‘demand remains strong’ in Q3 trading report
Watches of Switzerland Group has published trading results for the 13 weeks (Q3) to 29 January 2023, revealing a 17% rise in revenues to £407 million.
Performance in the quarter was driven by luxury watches, where demand continues to exceed supply. Q3 FY23 luxury watches were up 22% at reported rates of £340 million, representing 84% of revenue.
The luxury jewellery category was up by a steady 2% to £41 million.
Watches of Switzerland's e-commerce revenue was up by 5% year-on-year, reflecting efforts the business has put into its omnichannel strategies, such as improving its product ranging, increasing availability for next-day delivery and expanding its virtual boutique team.
In the UK and Europe, revenues stood at £238 million (Q3 FY22: £223 million), up by 7% year-on-year. Strong performance in the UK continues to be driven by domestic clientele and a limited return of tourist spending. The UK showroom development programme continues with several projects completed in the quarter, such as the new Canary Wharf showroom.
A new flagship Rolex Boutique is also planned to open later this year on Bond Street.
Brian Duffy, Chief Executive Officer, said: "I am pleased with our strong Q3 performance which is a 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... Demand remains strong and continues to exceed supply, with client registration lists growing. We exited the quarter with good momentum and are pleased to reiterate our full-year guidance.
"Our expansion into Europe continued with the opening of our fifth mono-brand boutique, with OMEGA in Stockholm in the third quarter. Early trading remains positive, and we are excited to open our first mono-brand boutique in Dublin with TAG Heuer later this month."