Revenues from the USA now make up 45% of Watches of Switzerland’s global revenues, its financial accounts for FY2024 reveal.
The proportion of sales that the UK-based watch retailer now derives from North America is up from 42% last year after revenues increased 6% year-on-year and 11% on a constant currency basis.
Underlying growth was strong across all locations with continued consumer appetite for high demand products.
New York and the Wynn Resort, Las Vegas performed particularly strongly. It said this was accomplished through a combination of quality product offering and superior client experience and backed up by strong marketing campaigns which had significant reach across offline and online channels.
During the year, the US opened 10 showrooms. This included eight mono-brand boutiques in three locations: Topanga, California; New Orleans, Louisiana; and Murray, Utah.
A further two multi-brand showrooms were opened, including a Rolex-anchored multi-brand Watches of Switzerland showroom at American Dream, New Jersey which was fully completed in October 2023.
The opening of a large Cartier space, and its third Watches of Switzerland showroom in Manhattan, at One Vanderbilt (main image), took place in March 2024.
In comparison, UK and Europe revenues declined by 5% during the year.
Overall group revenue increased 2% at constant currency to £1.54 billion ($1.95 billion) for the year to 28 April 2024, but was flat at reported rates on the prior year.
Luxury watch sales, which represents 87% of its business, rose 3% in constant currency and 1% on a reported basis, with a particularly strong performance in the US.
Adjusted EBITDA declined from £201m (£254m) last year to £179m ($226m) this time around.
CEO Brian Duffy commented: “I am proud of the performance that our team delivered this year in what was undoubtedly a more challenging market.
“We cemented our position as a leading international luxury watch and jewellery retailer and delivered further market share gains in both the UK and US, driven by our proven, differentiated business model. In particular, our US business went from strength to strength, growing 11% and will soon represent half of group sales.”
During the year, Watches of Switzerland continued to invest for high-quality growth across showroom projects and strategic acquisitions, including 15 Ernest Jones showrooms acquired last November, and the acquisition of Roberto Coin Inc. post year-end.
“We have an impressive programme of showroom developments on both sides of the Atlantic and our strongest ever pipeline of committed projects, which includes the flagship Rolex boutique on Old Bond Street, London, Audemars Piguet Townhouse in Manchester, Rolex boutique in Atlanta, Georgia and a Rolex anchored multi-brand in Plano, Texas.”
Mr Duffy also said that pre-owned represents a significant opportunity for the group, with pre-owned luxury watch sales doubling year-on-year in the fourth quarter of FY24.
“Within this category, the new Rolex Certified Pre-Owned programme is performing ahead of our expectations in both the US and UK and is set for further roll-out in FY25 with improved methods of supply in the UK,” he commented.
Mr Duffy said the business was still aiming to doubling sales and profit by 2028.
As at 28 April 2024, the Watches of Switzerland Group had 223 showrooms across the UK, US and Europe including 99 dedicated mono-brand boutiques in partnership with Rolex, Omega, TAG Heuer, Breitling, Tudor, Audemars Piguet, Grand Seiko, Bvlgari and Fope.
It also has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5, as well as seven retail websites.