Online sales boost Watches of Switzerland Q4 revenues

(Sharecast News) - Luxury watch retailer Watches of Switzerland said online sales helped drive soaring fourth quarter revenues despite the extended Covid-19 lockdown which saw its outlets closed for months.
The company said group revenue in the 14 weeks to May 2 rose 76% to £218m on a reported basis, driven by a 218% increase in UK online sales.

For the full year, group revenues came in at £905.1m, up from £810.5m a year ago.

The company, Britain's biggest retailer of Rolex, Omega, and Breitling watches, said group e-commerce sales jumped 120.5%.

UK fourth quarter revenue was up 49.3% to £126.2m year on year, but down 2.7% relative to 2019 before the pandemic struck.

It also confirmed it would repay all government furlough support as well as repaying and cancelling £45m received from the coronavirus large business interruption loan scheme.

"Throughout the year we either met or exceeded our guidance despite the changing circumstances, in particular, the much longer-than-expected last lockdown in the UK," said chief executive Brian Duffy.

"In the UK, we delivered a very robust performance, overcoming a total of 26 weeks of store closures and hugely reduced travel and tourism business. In the US, we generated an outstanding result with very strong momentum.

The company forecast 2022 revenue of £1.05bn - £1.1bn. with core earnings and adjust core earnings margins of flat to +0.5%.

"During full-year 2022, the group does not assume any supply disruption or any national lockdowns in any of its markets with a gradual recovery in footfall anticipated. Our guidance reflects visibility of supply of key brands. The group does not expect the return of tourism and airport business to pre-pandemic levels during the year."