Watches of Switzerland experienced varied financial outcomes in its first half of FY25.
- Group revenue increased by 4% to £785m, driven by strong US market performance.
- Despite revenue growth, adjusted EBIT decreased by 9% due to integration costs.
- Significant drop of 39% in statutory profit before tax was noted.
- Roberto Coin acquisition contributed to substantial growth in luxury jewelry.
Watches of Switzerland witnessed an overall positive trend in its group revenue, which rose by 4% to reach £785 million during the first half of FY25. This increase was largely supported by a strong performance in the US market.
Despite the overall revenue growth, the company’s adjusted operating earnings (EBIT) fell by 9% to £66 million. This decline was attributed to costs associated with recent acquisitions and integration efforts.
The statutory profit before tax plummeted by 39%, settling at £41 million. This significant reduction highlights the financial pressures faced by the company amidst its expansion activities.
The US market emerged as a crucial driver of growth, with a remarkable 24% increase in revenue during the second quarter. In contrast, the UK and Europe experienced a minor decline of 1%, which translated to £430 million in revenue.
The acquisition of Roberto Coin has played a pivotal role in bolstering the company’s luxury jewelry segment, contributing £51 million in revenue and resulting in a 104% increase, although overall jewelry sales fell by 6% when excluding this acquisition.
CEO Brian Duffy expressed optimism, noting the encouraging start to Q3 trading and emphasizing the strategic focus on showroom expansions in key locations such as London, Manchester, Texas, and Florida.
Additionally, the acquisition of Hodinkee is expected to enhance the company’s digital presence and engagement with luxury watch enthusiasts. Looking forward, the company maintains its full-year revenue projections between £1.67 billion and £1.73 billion, anticipating steady growth.
Duffy remains confident in a strong second half of FY25, driven by showroom investments and ongoing momentum in the US and UK markets.
Watches of Switzerland remains cautiously optimistic about future performance despite recent challenges.
