Sales at Watches of Switzerland rose in the second fiscal quarter, boosted by a strong performance in the U.S. and the acquisition of 19 Ernest Jones watch showrooms.
Group sales rose 1% year-on-year to GBP 379 million ($472.3 million) in the three months ended October 29, the British company said last week. U.S. sales rose 4% to GBP 165 million ($205.6 million) as consumer demand returned and the company opened six new watch boutiques. Sales in the UK and Europe were flat at GBP 214 million ($266.7 million).
The retailer also benefited from the acquisition of 19 Ernest Jones luxury watch stores from Signet Jewelers. These include 14 multi-brand showrooms, which will be rebranded as either Goldsmiths or Mappin & Webb, and five mono-brand boutiques. The new acquisition offset the temporary closure of several of Watches of Switzerland’s other high-turnover stores, which the company upgraded during the period, the company said.
“We maintained strong momentum in the USA,” said Brian Duffy, CEO of Watches of Switzerland. “The UK performance was achieved despite the impact of the closure of several Goldsmiths and Mappin & Webb showrooms for refurbishment. During the period, we focused on developing our network of luxury showrooms in the UK, US and Europe. In October 2023, we agreed to acquire 19 luxury showrooms…from Ernest Jones in the UK.”
In the first half, luxury watch sales were flat at £670 million ($834.9 million), accounting for 88% of total sales. Jewelry sales were down 17% year-on-year to GBP 47 million ($58.6 million), reflecting weaker consumer sentiment and a repositioning in the US towards full-price sales, the company said. Group sales were flat at GBP 761 million ($948.3 million).
Watches of Switzerland maintained its full-year sales forecast of GBP 1.65 billion to GBP 1.7 billion ($2.06 billion to $2.12 billion). The financial year runs until April 2024.
