Watches of Switzerland raises steerage as gross sales surge

Watches of Switzerland raises guidance as sales surge

Watches of Switzerland has introduced that income for the primary 10 weeks of Q2 has been “stronger than anticipated” at £202.7m, up 20.2% in fixed forex and 18.three% in reported phrases towards the prior yr.

The group additionally reported gross sales so far of £145.1m, up by 12.6% towards the prior yr. 

It comes as its UK efficiency has been pushed by “robust” home gross sales, which has offset decrease vacationer and airport enterprise, in line with the group. 

Vacationer and airport gross sales accounted for under 9.2% of group gross sales within the second quarter so far, down from 32.5% the yr earlier than.  

UK regional shops, nonetheless, “continued to outperform” London shops the place footfall nonetheless stays low, although e-commerce gross sales throughout the UK have been up by 49.9% in complete.

The group added that luxurious watches have additionally outperformed within the interval, whereas luxurious jewelry has “carried out effectively” with development seen in each the UK and the US markets. 

As well as, new product launches have “additionally been stronger than anticipated with a optimistic affect on gross sales”.

In gentle of its newest replace, the group has now raised its steerage for the 2021 monetary yr, with complete income now anticipated to be between £880m and 910m, up from the earlier steerage of £840m to £860m. 

Brian Duffy, CEO, mentioned: “We’re very happy with the robust Q2 efficiency we’re delivering in what proceed to be unprecedented market situations.  

“Buying and selling momentum has additional improved in Q2.  Stronger than anticipated UK home gross sales are offsetting decrease vacationer and airport site visitors, while regional shops are persevering with to outperform London shops.”  

He added: “Moreover, the robust momentum now we have established within the US has additional accelerated.  All US areas are contributing to this optimistic development.

“Our steerage for the steadiness of the fiscal yr assumes that the optimistic development skilled in Q2 might be moderated by the impression of pandemic associated retail disruption within the UK and the US and uncertainty within the US economic system, impacting primarily in Q3.  We don’t assume any enchancment in latest developments relating to the journey or vacationer sectors.” 

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