Profits Soar as Online Sales Boom

  • Watches of Switzerland reports a significant increase in H1 profits
  • Profit rises to £36.2m from a £9m loss in the previous year
  • Total sales down 2.6% due to lockdowns and reduced tourism
  • Online sales surge by 65.4% during the period
  • Adjusted EBITDA improves by 26.5% to £52.2m
  • Full-year revenue guidance revised upwards to £900m – £925m
  • CEO Brian Duffy: ‘well positioned for future growth’ in UK and US markets

Watches of Switzerland has reported a significant increase in its half-year profits, with the company’s profit rising to £36.2 million in the 26 weeks ended October 25th, up from a £9 million loss in the previous year. Despite total sales falling 2.6% on a constant currency basis due to lockdowns and restrictions on non-essential retailers, online sales soared by 65.4%. The watch retailer’s adjusted EBITDA improved by 26.5% to £52.2 million, despite stores trading for only 59% of their total hours in the half-year. UK sales dropped 7.4% due to decreased tourism, while e-commerce sales boomed. The company has revised its full-year guidance for 2021, predicting revenues between £900 million and £925 million, up from previous expectations of £880 million to £910 million. CEO Brian Duffy stated that the company is well positioned for future growth in both UK and US markets.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Watches of Switzerland’s financial performance, including profit increase, sales figures, and online sales growth. It also includes relevant quotes from the CEO, Brian Duffy, discussing the company’s strategy and future plans. The article is mostly focused on the topic without any significant digressions or misleading statements.
Noise Level: 3
Noise Justification: The article provides relevant information about Watches of Switzerland’s financial performance during a specific period, including profit increase, sales figures, and online growth. It also includes comments from the CEO on the company’s strategy and future plans. However, it lacks in-depth analysis or exploration of broader trends or consequences for the industry or society.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and luxury watch industry
Financial Rating Justification: The article discusses Watches of Switzerland’s financial performance, including increased profits, sales figures, and revised guidance for the full year. This impacts the UK retail sector and the luxury watch industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk