Watches of Switzerland Sets Sights on New Markets

Feb 10, 2022 9:13 AM By Rapaport News

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RAPAPORT... Watches of Switzerland will open six boutiques in Sweden, Denmark and the Republic of Ireland as it expands its European business following buoyant sales at the end of last year.

The company will also launch stores in places where it is already well established, including several in the US and UK, it said Thursday.

“Our entry into the European market with mono-brand boutiques...provides our group with further geographic diversification, in line with our long-range plan,” said Watches of Switzerland CEO Brian Duffy.

The acquisitions come amid the company’s five-year blueprint for global expansion, which it announced in June.

Group revenue rose 28% to GBP 348.1 million ($472.4 million) in the third fiscal quarter ending January 30, with consumer appetite for timepieces in both the US and UK continually outstripping supply, the retailer noted. Revenue in the UK climbed 20% to GBP 223.5 million ($303.3 million), while in the US the figure jumped 45% to GBP 124.6 million ($169.1 million). E-commerce sales slipped 1.1% compared to the same period the previous year, when more consumers were purchasing online due to Covid-19 lockdowns, Watches of Switzerland explained.

Sales for luxury watch brands Rolex, Patek Philippe and Audemars Piguet rose 21% year on year amid “super-high demand,” the company said. Revenue for other timepiece brands surged 112% versus the third quarter of 2020. Jewelry sales soared 88%, reflecting high demand, as well as the addition of the Betteridge brand, which Watches of Switzerland acquired in November, and the opening of the company’s first Bulgari boutique.

“I am pleased to report continued strong momentum following a successful Christmas trading period,” Duffy added. “Strong trading to date, revised pricing by certain brands and visibility of supply for calendar 2022 all support our expectation to perform towards the top end of our full-year guidance.”

Watches of Switzerland expects revenue for the full year to reach approximately GBP 1.2 billion ($1.62 billion).

Image: A Watches of Switzerland store in Broadgate Circle, London, UK. (Watches of Switzerland)

Tags: Audemars Piguet, Betteridge, Brian Duffy, Bulgari, Jewelry, luxury watches, patek philippe, Rapaport News, Rolex, Watches of Switzerland