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(Alliance News) - Watches of Switzerland Group PLC on Tuesday lifted its sales and earnings guidance on the back of a strong post-pandemic recovery.
Shares in the Leicester-based watch retailer were 11% higher in London on Tuesday morning at 1,262.00 pence each, while the wider FTSE 250 index was up just 0.2%.
Watches said its strong performance in the first half, covering the 26 weeks to October 31, led to a 45% surge in revenue year-on-year to GBP586.2 million from GBP414.3 million. This was up 41% on the same period in 2019.
The retailer said its UK revenue was driven by "thriving domestic clientele". Revenue in the UK was up 42% on the year before, while it was 50% higher in the US.
Chief Executive Brian Duffy said: "We are very pleased with our first half performance. Over the last two years, we have demonstrated the versatility of our multi-channel model with a more than doubling of sales to domestic clients and within this half year, a significant change in brand mix."
Watches of Switzerland also pointed to its US expansion strategy, and has agreed to purchase five more stores in four new states. They are located in Plano, Texas; Vail and Aspen, Colorado; Greenwich, Connecticut; and Minneapolis, Minnesota
"We have enjoyed re-connecting with customers in our stores whilst further elevating the experience by retaining several initiatives and enhancements introduced during the Covid-19 pandemic. We have further expanded the Luxury Watch and Jewellery Virtual boutique in the UK, continued to grow the 'by personal appointment' business which now accounts for approximately 40% of UK sales and continued to enhance CRM, clienteling and digital marketing initiatives," Duffy continued.
Looking ahead, Watches of Switzerland has upped its annual revenue outlook. For financial 2022, the retailer is now guiding for revenue between GBP1.15 billion and GBP1.20 billion, which is up from previous forecasts of GBP1.05 billion to GBP1.10 billion and from GBP905.1 million in financial 2021.
Duffy added: "The strength of our performance, both in our well-established UK business and in our growing US business, coupled with our confidence in the luxury watch and jewellery categories has led us to upgrade our guidance for the full year. We are well stocked for the holiday period and look forward to providing an exceptional shopping experience for our customers."
By Paul McGowan; paulmcgowan@alliancenews.com
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