UK-based retailer Watches of Switzerland has reported a statutory operating profit of £179m ($99.35m) in fiscal year (FY) 2023, up 26% from £142m in FY22.
For the 52 weeks to 30 April 2023, the company’s revenue increased 25% to £1.54bn.
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Regionally, Europe and the UK reported 10% revenue growth. Revenue in the UK rose 52%.
Driven by the increased average selling price (ASP) and volume growth, sales for luxury watches increased by 28% in FY23. Sales in luxury jewellery grew by 10%.
Watches of Switzerland reported adjusted earnings before interest and taxes (EBIT) of 27%. Its adjusted EBIT margin increased 20 basis points (bps) to 10.7% in FY23.
Watches of Switzerland chief executive Brian Duffy said: “Our record performance is a testament to our unique combination of longstanding luxury brand partnerships, dedicated colleagues focused on delivering exceptional client service and our well-invested network of showrooms, which are supported by leading multi-channel capabilities.
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By GlobalData“Luxury watch demand remains strong and continues to outpace supply, with our client registration lists extending and average selling prices growing.”
For FY24, the company expects its revenue to grow from 8% to 11% at constant currency to £1.65bn – £1.70bn.
In addition, Watches of Switzerland also expects its adjusted EBIT margin percentage to align with FY23.
The company said it started FY24 strongly with the opening of a new showroom at American Dream in New Jersey. It also upgraded and relocated its Mayors showroom in Dadeland, Florida.
In addition, the retailer opened five mono-brand boutiques in the UK and Europe, including its debut showroom in Germany.
Duffy added: “We reiterate our guidance for FY24, which reflects our continued confidence in the strength of our organic growth strategy whilst we continue to actively pursue additional inorganic growth opportunities to enhance that growth.”
