Watches Of Switzerland E-Commerce Sales Increase 65%

By Alana Garcia | January 4, 2021

Photo Credit: Watches of Switzerland GroupWatches of Switzerland, the premier luxury timepiece retailer, released its latest financial earnings report. Despite the uncertainty of these times, their leading position in luxury watches escalated, as well as their e-commerce sales, which increased by over 65%.

Photo Credit: Watches of Switzerland GroupBrian Duffy, Chief Executive Officer, said, “We have continued to deliver on our strategic priorities during the first half, achieving a robust performance against significant headwinds, further consolidating our position in luxury watches and demonstrating the unique, supply-driven qualities which underpin the resilience of our category and the strength of our business.”

Photo Credit: Watches of Switzerland Group In the face of the pandemic, their category continues to deliver growth in profit. Their trading outcome for the primary half of FY21 have a tale two halves; Q1 was considerably impacted by the nationwide lockdown of stores in the United Kingdom and US, resulting in Group gross sales being down 27.6% (-27.7% on a constant currency basis), while Q2 efficiency was stronger than anticipated with Group gross sales up 19.8% (21.5% on a constant currency basis). Following the tip of Q2 FY21, the Group experienced a four-week lockdown impacting all shops in England from 5 Nov 2020 till 2 Dec 2020. Trading throughout this period was encouraging and as a result, they have upgraded their gross sales and revenue steerage for the complete year.

Photo Credit: Watches of Switzerland Duffy continues, “Despite significant headwinds throughout the period, we achieved a good sales performance with domestic customers offsetting lower tourist and airport sales in the UK, and elevated momentum in the US. The Group’s ambition, adaptability, and technical strength were positively demonstrated through enhanced digital activity, a step up in online, increased marketing, CRM, and click and collect. With positive cash management, we have further reduced debt and have a significant liquidity headroom.”

Photo Credit: Watches of Switzerland GroupIncome in H1 FY21 lowered by 3.4% on the prior period of 365 days to £414.3 million (-2.6% on a constant currency basis). US income made up 29.0% of Group revenue, growing from 25.9% within the prior year. The primary quarter was closely impacted by retailer closures on account of COVID-19, leading to an income decline of 27.6% (-27.7% on a constant currency basis). However, this efficiency improved considerably in Q2 as shops re-opened and delivered a rise in income of 19.8% compared to the prior year. This was delivered despite lowered UK retailer footfall, a decrease in airport passenger numbers, and minimal vacationer enterprise. It is a testimony to the Group’s deal with enhanced CRM activities, digital marketing, and e-commerce growth.

Photo Credit: Watches of Switzerland GroupOn account of elevated demand and the continued execution of the Group’s strategy, luxurious watches now construct up 87.4% of Group revenue, up 210bps on the prior year. Watches of Switzerland Group continued to watch sturdy demand for luxurious watch manufacturers and the Group’s luxurious watch gross sales in the primary half had been down simply 0.9% on the prior year, within the face of shops being closed for a number of weeks.

Photo Credit: Watches of Switzerland GroupBrian Duffy finished by saying, “We are confident we are well-positioned for future growth, with plans to continue to invest in further cementing our market leadership in the UK and to build upon our early success generated to date in the US.”