REG - Watches of Switzlnd. - FY25 Trading Update

Watches of SwitzerlandAnnouncement

15/05/2025 07:00

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RNS Number : 7311I  Watches of Switzerland Group PLC  15 May 2025

15 May 2025

 

Watches of Switzerland Group PLC

FY25 Trading Update

for the 52 weeks to 27 April 2025

 

Full year performance in line with market expectations(1)

Strong strategic and operational progress with significant performance
improvement in H2

 

Brian Duffy, Chief Executive Officer, said:

"In H2 FY25 we returned to growth in both the UK and US, delivering Group
revenue of +12%, driving a full-year performance of +8% (constant currency).
Full year Adjusted EBIT(2) is expected to be in line with market expectations.

 

"In the US, we experienced strong momentum, delivering +19% revenue growth in
H2 FY25 and +16% for the full year (constant currency).  In the UK, we were
pleased to see the external environment stabilise in line with our
expectations, supporting revenue growth of +6% in H2   FY25 and +2% for the
full year.

 

"A highlight for our Group in H2 FY25 was the opening of the new flagship
Rolex boutique on Old Bond Street, London, in which we were able to bring our
retailing excellence and operational strength to bear. Trading since launch
has exceeded our expectations. We delivered several key Rolex projects in the
US, including the brand's introduction in Plano, Texas, its reintroduction in
Jacksonville, Florida, and the conversion of Mayors Lenox in Atlanta into a
3,000 sq. ft Rolex boutique.

 

"As we look ahead, we remain confident in the strength of our business model,
our strong pipeline of showroom openings and the resilience of the luxury
watch category where demand for key brands continues to outstrip supply. We
are of course mindful of the broader macroeconomic and consumer environment,
including potential US tariff changes."

 

FY25 trading update

·   Full year Group revenue of £1,652 million, +8% vs last year in
constant currency (+7% reported), in line with market expectations

o UK & Europe revenue +2%

o US revenue +16% in constant currency (+14% reported)

·   Demand for our key luxury brands, particularly products on Registration
of Interest lists, remains strong, outstripping supply in both the US and UK
markets

·   Improved second half performance with Group revenue +12% in H2 FY25 vs
+4% in H1 FY25 vs prior year (constant currency)

o US revenue improved to +19% in H2 FY25 vs +11% in H1 FY25 (constant
currency).  As previously outlined, in Q1 FY25 we increased showroom stock
levels of key brands to enhance displays and client experience, particularly
in the US

o In the US, following a temporary period of consumer uncertainty in response
to the initial tariff announcement, we have seen a return to normalised
trading patterns in April.  We are cognisant that the US tariff situation is
currently unresolved, making it more difficult to predict future US trading
patterns

o Positive improving trend in the UK, to +6% in H2 FY25

·   We continue to be encouraged by the performance of our pre-owned
businesses in the UK and US

·   Roberto Coin Inc. has performed strongly

·   Full year Adjusted EBIT expected to be in line with market expectations

 

Strategic progress

·   We made good progress with our showroom development programme
throughout the course of the year, which included the completion of a number
of significant Rolex anchored projects

o Opened the new flagship Rolex boutique on Old Bond Street, London (March
2025), which is trading ahead of our expectations

o Introduction of new Rolex agencies to our relocated Watches of Switzerland
Plano, Texas and refurbished Mayors Jacksonville, Florida showrooms (Q4 FY25)

o Conversion of the Mayors Lenox, Atlanta showroom to a 3,000 sq. ft Rolex
boutique (Q4 FY25)

o New Patek Philippe room in Betteridge Greenwich, Connecticut (Q1 FY25)

o Expansion of Betteridge Vail, Colorado and relocation of Mayors Tampa,
Florida (Q3 FY25)

o Conversion and expansion of Watches of Switzerland Fenchurch Street, London
from Mappin & Webb (Q3 FY25)

o Completed the Audemars Piguet Townhouse, Manchester (opened 6 May 2025)
operating as a joint venture

o Progress made on the Mappin & Webb Jewellery Boutique, Manchester,
opening Autumn 2025

·   The integration of the acquisitions of Hodinkee and Roberto Coin Inc.
are progressing well, and we are advancing a number of incremental growth
plans with these businesses

·   Positive consumer response from new product lines introduced following
Watches and Wonders in Geneva

 

Outlook

As we enter FY26, although we are mindful of the uncertain macroeconomic
backdrop, including potential US tariff changes, we remain confident in the
strong fundamentals of the luxury watch category and our differentiated
business model in the underdeveloped US market.

 

We are focused on the delivery of our strategy and are encouraged by our
strong pipeline of high-quality projects opening in FY26, across both the UK
and US, including the opening of the refurbished Northern Goldsmiths,
Newcastle, expansions or relocations of a further six UK showrooms, new
Watches of Switzerland Southdale, Minneapolis and relocation of Mayors UTC,
Florida.

 

We will also launch our upgraded US Watches of Switzerland ecommerce website
in Q1 FY26 with further sites launching for Mayors and Betteridge during the
year.  This will provide a significantly enhanced client experience.

 

The US luxury jewellery market is the largest in the world and growing
strongly.  We will continue to build on the momentum we have seen in Roberto
Coin Inc., with several exciting growth initiatives, including the launch of a
major marketing campaign, secured locations for three mono-brand boutiques and
our ecommerce website upgrade.

 

The Group plans to announce FY25 results on 3 July 2025.

 

 

FY25 revenue performance by geography

 

                  H1 FY25                                              H2 FY25
                  26 weeks to   Reported YoY%  Constant currency YoY%  26 weeks to     Reported YoY%  Constant currency YoY%

                  27 Oct 2024                                          27 April 2025

 (£ million)

 UK & Europe      430           -1%            -1%                     436             +6%            +6%
 US               355           +8%            +11%                    431             +18%           +19%
 Group Revenue    785           +3%            +4%                     867             +12%           +12%

 

 

                  FY25            FY24            FY25 vs FY24
                  52 weeks to     52 weeks to     Reported  Constant currency YoY %

                  27 April 2025   28 April 2024    YoY %

 (£ million)

 UK & Europe      866             846             +2%       +2%
 US               786             692             +14%      +16%
 Group Revenue    1,652           1,538           +7%       +8%

 

Notes

The financial information contained herein is unaudited

Growth rates are calculated on unrounded numbers

 

( 1 ) Company compiled consensus

( 2 ) Adjusted EBIT is defined as operating profit before exceptional items
and IFRS 16 impact

 

 

Contacts

 The Watches of Switzerland Group
 Anders Romberg, CFO                                                             +44 (0) 207 317 4600
 Caroline Browne, Group Finance and Investor Relations Director                  +44 (0) 116 281 7420
 investor.relations@thewosgroup.com (mailto:investor.relations@thewosgroup.com)

 Headland
 Lucy Legh / Rob Walker / Scarlett Hateley                                       +44 (0) 203 805 4822
 wos@headlandconsultancy.com (mailto:wos@headlandconsultancy.com)

About the Watches of Switzerland Group

The Watches of Switzerland Group is the UK's largest luxury watch retailer,
operating in the UK, US and Europe comprising seven prestigious brands;
Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK),
Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a
complementary jewellery offering. Since 8 May 2024, the Group has also owned
the exclusive distribution rights for Roberto Coin in the USA, Canada, Central
America and the Caribbean.

 

As at 27 April 2025, the Watches of Switzerland Group had 208 showrooms across
the UK, US and Europe including 94 dedicated mono-brand boutiques in
partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand
Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow
Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail
websites.

 

The Watches of Switzerland Group is proud to be the UK's largest retailer for
Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

www.thewosgroupplc.com (http://www.thewosgroupplc.com)

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