Sales of high-end watches and lab-grown diamonds fuel bumper profits despite tougher conditions in the UK and Europe
Luxury retailer Watches of Switzerland has reported a huge jump in annual profits after strong demand for premium watches and luxury jewellery helped offset a weaker UK market.
The company, which sells brands including Rolex and Omega, said pre-tax profits surged 76 per cent to £133 million in the year to May 3, up from £76 million a year earlier.
Group sales also climbed 13 per cent to £1.83 billion, driven by a 24 per cent rise in US revenues. Sales in the UK and Europe increased by 5 per cent.
Chief executive Brian Duffy said the group’s UK business was showing “encouraging signs of improvement” despite ongoing economic uncertainty.
Betting big on jewellery
The retailer is expanding its presence in the luxury jewellery market, opening its first dedicated jewellery showroom within the Mappin & Webb boutique in Manchester.
The company said the move reflects its confidence in long-term growth in the jewellery sector.
Watches of Switzerland has also launched a range of lab-grown diamonds through its Goldsmiths brand, saying demand for the stones is proving increasingly popular with customers.
Luxury jewellery sales rose 17 per cent during the year, including growth of 12 per cent in the UK and 26 per cent in the US.
Strong outlook despite global uncertainty
The company expects sales to continue growing, forecasting revenue growth of between 5 and 10 per cent over the coming financial year.
It said trading during the first ten weeks of the new year had been “encouraging”, with strong momentum continuing in the United States and improving conditions in the UK.
Despite geopolitical uncertainty, the luxury retailer believes demand for premium watches and jewellery remains resilient, positioning the business for another year of growth.
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