Revenue growth for Swiss companies – Reason, strong US demand for watches
Watches of Switzerland Group has revealed its results for the first half of the financial year 2025 (H1 FY25), for the 26 weeks ended 27 October 2024. The group's revenue for the first half of FY25 reached £785m (€948.61m) , an increase of 3% from the same period last year. Strong performance in the US offsetting a slight decline in the UK.
However, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell to £87m (€105.12m), a 7% drop from the same period last year. Statutory operating profit also fell by 23%, while statutory profit before tax fell by 39%. Revenue from luxury watches fell 3%, mainly due to a one-off increase in showroom stocks in the first quarter of the financial year, which mainly affected the US.
Group luxury jewelery revenue, excluding Roberto Coin, fell 6%, weighed down by US luxury jewelery revenue as the bridal category struggled in the country, with last year's inventory also being cleared during this time. However, the UK bucked the trend, with luxury jewelery revenue up 4%.
The share of luxury watches in the group's revenue also fell, mainly due to an increase in jewelery stocks from Roberto Coin. However, core brands continued to see strong demand, with the vintage and certified pre-owned divisions performing particularly well.
Watches of Switzerland sells a number of luxury watch brands such as Rolex, Patek Philippe and Breitling. Brian Duffy, chief executive officer (CEO) of Watches of Switzerland, said of the H1 FY25 earnings report on the company's website: "Our newly acquired Roberto Coin business in North America has traded strongly since the acquisition and is now delivering a good contribution to our Group.
"The integration is progressing well and growth plans are underway. We are also encouraged by the performance of the Rolex Certified Pre-Owned program and the steady growth in our overall pre-owned business.
"In addition, we acquired Hodinkee, a leading global digital platform for luxury watch enthusiasts, further strengthening our online sector leadership. Third quarter trading is off to an encouraging start and we have continued with our showroom transformation program of the exhibition."
To celebrate its 100th anniversary, Watches of Switzerland has collaborated with independent watchmakers Craig and Rebecca Struthers, for a unique centennial piece that focuses on the combination of art and tradition. The company has also launched other pieces to celebrate this historic anniversary, such as the Serpenti Seduttori watch, in collaboration with Bulgari.
Craig Bolton, president of Watches of Switzerland Group UK and Europe, said in a press release on the company's website: "Having the opportunity to create a Swiss watch to commemorate our 100th anniversary is a new milestone for the business.and adds to the legacy of Watches of Switzerland.We are honored that renowned watchmakers Craig and Rebecca Struthers were able to create this unique piece for the business.
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