Driven by strong US growth, Watches of Switzerland saw revenue rise 4% to £785 million in H1 FY25.
- Despite this, adjusted EBIT decreased 9% to £66 million due to acquisition costs.
- The group’s statutory profit before tax fell 39% to £41 million.
- Luxury jewellery sales surged, bolstered by the Roberto Coin acquisition.
- The company remains optimistic about its full-year outlook.
In the first half of the 2025 fiscal year, Watches of Switzerland experienced a notable 4% increase in revenue, reaching £785 million. This growth resulted largely from a robust performance in the United States. The US market, in particular, stood out with a remarkable 24% revenue growth, contrasting with a slight 1% decline in the UK and Europe, bringing revenues in these regions to £430 million. Despite these gains, the company faced a challenging operating environment, with adjusted earnings before interest and tax (EBIT) falling by 9% to £66 million, impacted by acquisition-related expenses and integration processes.
The firm’s pre-tax profit recorded a significant drop, lowering by 39% to stand at £41 million. The company’s performance was buoyed by a strong second-quarter recovery, showing consistent 4% revenue growth in constant currency terms.
The retail giant’s expansion was driven by acquisitions, with the integration of Roberto Coin proving particularly lucrative. This acquisition contributed £51 million in revenue and resulted in a dramatic 104% growth in luxury jewellery sales, despite a 6% decline in jewellery sales excluding Roberto Coin. Additionally, the company’s pre-owned watch sector performed well, with Rolex Certified Pre-Owned emerging as the second-largest luxury watch brand within their offerings.
Amid these financial dynamics, Watches of Switzerland also made significant progress with its showroom expansion plans. Key new sites are set to open in major locations, including London, Manchester, Texas, and Florida, further strengthening their market presence. The acquisition of Hodinkee, a leading platform in the luxury watch space, is poised to enhance the company’s online footprint.
Looking towards the future, Watches of Switzerland maintains a positive outlook for the full year, projecting revenues of between £1.67 billion and £1.73 billion, indicative of expected growth in the range of 9% to 12% at constant currency. The company remains confident about the upcoming holiday trading period, bolstered by substantial investments in both showrooms and digital capabilities.
Overall, Watches of Switzerland shows resilience and optimistic growth prospects despite recent financial challenges.
