America looks on track to become Watches of Switzerland Group’s largest market if momentum in the first half of this financial year continues into 2023.
Revenue for the group’s home market of the UK, which now also oversees three recently opened monobrand stores in Scandinavia, was up 8% for the 26 weeks to October 31, at £454 million.
For the same period, sales in the United States rose by 60% at constant currency to £311 million.
The strength of the dollar means the UK-based business saw revenue rise by 86%, year-on-year in sterling.
Luxury watch brands have also been increasing prices, particularly in the UK and Europe, in an attempt to stop one market becoming much cheaper because of a weaker currency against the US dollar.
Watches account for 87% of WoSG revenue.
H1 growth in the United States was boosted by the acquisitions of Betteridge in Greenwich, Connecticut, Timeless Luxury in Plano, Texas, and one of Ben Bridge’s boutiques in Mall of America outside Minneapolis.
The deal was completed in November last year.
The group’s revenue forecast for the full year, which runs to the end of April 2023, is unchanged at £1.5 to £1.55 billion, and its CEO Brian Duffy says the business is still seeing demand exceed supply of luxury watches.
This means waiting lists — rebranded as client registration lists — are getting longer.
“Demand remained strong through the quarter and continues to exceed supply, with client registration lists extending as consumers respond to innovative new products, impactful marketing and elevated client service,” Mr Duffy describes.
H1 EBIT is expected to be £86 million to £88 million, up year-on-year from £67 million. The H1 2022 profit was boosted by £5 million of UK business rates relief related to covid restrictions.
Watches of Switzerland Group shares have rebounded since the end of September after losing more than half their value since a peak price of 1600 pence at the end of last year.
The price dropped as low as 632 pence before recovering to 897 pence in this morning’s trading.
Although the strength of the American luxury watch market has buoyed sales and closed the gap on the UK and Europe operation, most new openings have been on this side of the Atlantic with three monobrands for Omega and Breitling opening in Denmark and Sweden. Most recently, a new shopping destination in the historic Battersea Power Station in London has welcomed a multibrand WoS showroom anchored by Rolex along with boutiques for Omega, Breitling, TAG Heuer and Tudor.