20th May 2021 14:14
(Alliance News) - Watches of Switzerland Group PLC on Thursday announced it achieved "outstanding growth" in the US and a robust performance in the UK, as the pandemic forced customers online to purchase luxury watches.
Revenue for the year to May 2 was GBP905.1 million, up 12% from GBP810.5 million the year before. Sales growth was in line with guidance, the company said in a trading update.
Its US business experienced particularly strong growth, with revenue 39% higher year-on-year at constant currency. UK revenue held firm, growing 3.6% against the prior year despite store closures for around 26 weeks and reduced tourism and airport business.
As shopping habits changed due to lockdown restrictions, the company said it saw a "significant step-up" in e-commerce sales, which more than doubled from last year.
"We finished the year strongly and enter the new financial year with real momentum, continuing to prove the value of our highly differentiated model," said Brian Duffy, Chief Executive.
It outlined guidance for the coming year of revenue between GBP1.05 billion and GBP1.10 billion, and highlighted a number of planned store openings in the UK and US. Watches of Switzerland reiterated plans to continue investing in growth in the next twelve months.
"Our guidance for financial year 2022 reflects our confident outlook for the luxury watch and jewellery categories and the success of our modern, international and multi-channel model," said Duffy.
"Looking ahead, we are confident in our plans to continue investing for growth and to sustain the momentum we have built into financial year 2022 and beyond."
The group also confirmed plans to repay all furlough support received during the period from the UK government.
Alongside Rolex and TAG Heuer, Watches of Switzerland sells other luxury brands such as Cartier, Omega and Breitling. It joined the London Stock Exchange in June 2019.
Shares in the company were 1.8% lower at 755.90 pence each in London on Thursday afternoon.
By Will Paige; [email protected]
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