CEO Cautiously Optimistic About Future Trading Conditions

  • Watches of Switzerland reports a 11% decline in adjusted EBITDA amid a 2% rise in group revenues to £1.5bn
  • US sales increased by 11% to £692m, while UK and Europe sales dipped by 5%
  • Luxury watch sales increased by 3%, but luxury jewellery sales declined by 13%
  • Group opened 99 multi-brand showrooms and 68 mono-brand boutiques in the UK
  • CEO Brian Duffy says the company is ‘cautiously optimistic’ about FY25 trading conditions
  • FY25 guidance expects revenues to increase by 9% – 12% to £1.67bn – £1.73bn
  • Investment in showroom projects and strategic acquisitions continue

Watches of Switzerland has reported a decline in adjusted EBITDA by 11% despite a 2% rise in group revenues to £1.5bn for the 52 weeks ended 28 April 2024. The company’s US sales increased by 11% to £692m, while UK and Europe sales dropped by 5%. Luxury watch sales, representing 87% of group revenues, grew by 3%, but luxury jewelry sales fell by 13%. By the end of 2024, Watches of Switzerland had opened 99 multi-brand showrooms (FY23: 89) and 68 mono-brand boutiques (FY23: 57) in the UK. Looking ahead, CEO Brian Duffy expressed cautious optimism about trading conditions in FY25, expecting revenues to increase by 9% – 12% to £1.67bn – £1.73bn. The company continues to invest in showroom projects and strategic acquisitions, such as the recent purchase of 15 Ernest Jones showrooms and Roberto Coin Inc.

Factuality Level: 9
Factuality Justification: The article provides accurate and relevant information about Watches of Switzerland’s financial performance, including revenue, EBITDA, sales by region, and CEO comments on future growth plans. It also includes specific numbers and percentages to support its claims.
Noise Level: 3
Noise Justification: The article provides relevant information about Watches of Switzerland’s financial performance and strategic plans, but it lacks in-depth analysis or exploration of broader trends or consequences for the luxury watch and jewelry market. It also does not offer significant actionable insights beyond the company’s statements.
Financial Relevance: Yes
Financial Markets Impacted: UK and US luxury watch and jewellery markets
Financial Rating Justification: The article discusses financial performance of Watches of Switzerland, a luxury watch and jewellery retailer, including changes in revenue, EBITDA, and market share. It also mentions the impact of macroeconomic conditions on sales and provides guidance for future growth.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses a decline in adjusted EBITDA and revenue for Watches of Switzerland, but there is no extreme event mentioned. The impact is considered minor as it’s related to macroeconomic conditions and reduced consumer confidence which affected the luxury watch and jewellery sales.

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