Luxury Watch Sales Surge Despite Store Closures

  • 5.9% increase in group revenues to £819.3m
  • 15.8% revenue growth across UK and US
  • 19.3% increase in luxury watches sales
  • 9.3% like-for-like sales increase
  • UK sales up 0.6% to £591.6m, US sales up 22.9%
  • Covid-19 closures impacted final six weeks of the year
  • 45.8% e-commerce sales growth
  • Expected pre-IFRS 16 EBITDA between £75m and £78m
  • New £45m facility agreement under government Coronavirus Large Business Interruption Loan Scheme
  • Double-digit sales growth before Covid-19 pandemic
  • Strong demand for luxury watches despite challenges

Watches of Switzerland has reported a 5.9% increase in group revenues to £819.3m for the year ending April 26, with a 15.8% growth across both UK and US markets. Luxury watch sales increased by 19.3%. Despite Covid-19 store closures affecting the final six weeks of the year, e-commerce sales surged by 45.8%. The company expects pre-IFRS 16 EBITDA between £75m and £78m and has secured a new £45m facility agreement under the government’s Coronavirus Large Business Interruption Loan Scheme. CEO Brian Duffy highlights strong demand for luxury watches despite current challenges.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Watches of Switzerland’s financial performance, including revenue growth, sales figures, and the impact of Covid-19 on their business. It also includes quotes from the CEO that support the information presented.
Noise Level: 3
Noise Justification: The article provides relevant information about Watches of Switzerland’s financial performance and its response to the Covid-19 pandemic, but it lacks a deeper analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Watches of Switzerland’s financial performance and its impact on luxury watch market
Financial Rating Justification: The article discusses the company’s financial performance, including revenue growth, EBITDA expectations, and its use of a government loan scheme. It also mentions the impact of Covid-19 on their business operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

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