Watches of Switzerland beats expectations due to surge in online sales
Watches of Switzerland saw sales smash £590m in the UK as the luxury group beat expectations for full-year revenue despite the coronavirus shutdown.
Despite a slowdown in the last six weeks of the year due to the coronavirus, the firm said revenue had risen 5.9 per cent to £819.3m.
The figures
In the 46 weeks to the middle of March, before worldwide lockdowns were implemented, Watches of Switzerland said that revenue had risen 15.8 per cent, with a near 20 per cent rise in sales of luxury watches driving the rise.
In the final six weeks to the end of April, however, the firm said that closures in both the UK and the US had “impacted momentum”.
In total, sales in the UK rose 0.6 per cent to hit £591.6m, while sales in the US increased 22.9 per cent to £227.7m.
According to the firm’s guidance, total revenue was estimated at £809m to £812m for the year.
Watches of Switzerland said that online sales, which rose 45.8 per cent during the lockdown period, were responsible for beating the forecast.
Net debt as at 26 April was £131.4m, which compares to the guidance provided prior to the Covid-19 pandemic of £120m to £130m.
The firm said it had also secured an additional £45m in liquidity through the government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
What Watches of Switzerland said
Chief executive Brian Duffy said: “We remain confident the strong fundamentals that underpin the luxury watch category remain intact and will do so as we emerge from the current situation.
“Luxury watches continue to be a supply-driven segment with robust demand and unique value preservation characteristics.
“Longer term, we are well positioned to deliver on our plans to leverage our leading position in the UK and become a leader in the US luxury watch market”.