Watches of Switzerland hails ‘enduring’ demand for luxury as sales surge

Watches of Switzerland has reported a boom in sales at its showrooms as it shrugged off wider cost-of-living concerns amid “enduring” demand for luxury watches and jewellery.

The retailer, which is listed on the London Stock Exchange, said its financial performance over the first half of the year had been better than expected.

Revenues rose by 15% to £974 million in the six months to November, compared with the same period last year and at constant currencies.

Luxury retailer Watches of Switzerland has upgraded its sales outlook thanks to demand over the key festive season (Alamy/PA)

This was driven largely by the US, where revenues surged by 22% year on year, while sales in the UK jumped by 9%.

The company hailed a “standout” performance in its showrooms where luxury jewellery sales soared by 31%.

Sales growth accelerated in flagship boutiques and across many regional cities in the UK, the retailer said.

Watches of Switzerland sells high-end brands such as Rolex, Cartier and Patek Philippe.

It also partners with jewellery brands including Roberto Coin, Goldsmiths, Mappin & Webb, and Mayors.

Chief executive Brian Duffy said the retailer was reporting a “strong” performance “despite an unsettled macroeconomic backdrop”.

“This reflects the strength of our market position, the quality of execution from our teams, and enduring demand for luxury watches and jewellery,” he said.

Adjusted earnings for the company are expected to be between £87 million and £89 million for the first half.

Watches of Switzerland said it was now expecting revenues for the full year to grow at the “upper end” of its previous guidance, between 7% and 10%.

Mark Crouch, market analyst at eToro, said: “Watches of Switzerland is offering a striking reminder that not all consumers are feeling the economic squeeze equally.

“While much of the retail sector wrestles with cautious shoppers and stretched household budgets, demand for luxury watches and jewellery remains remarkably strong, particularly in America.

“For customers willing to spend thousands on a Rolex or an expensive piece of jewellery, the wider cost-of-living crisis appears a distant concern.”